Accord is increasing the amount of money residential borrowers need to earn in order to qualify for a five-times-income mortgage.

From Wednesday borrowers will need to earn at least £70,000 in order to qualify for its top loan-to-income (LTI) tier of five times income.

Previously borrowers only needed to earn £60,000 in order to do so.

Borrowers who earn less than £70,000 will now see their LTI capped at 4.49x income.

Accord says that this will impact new business and new applications for additional loans. 

Pipeline cases are unaffected unless there is a “material change”.

Senior manager for new propositions Nicola Alvarez says: “We’ve made a difficult decision to increase the threshold with which we apply an LTI cap of five times to make sure we can continue to prudently lend to those with higher household incomes.

“We hope pipeline cases being unaffected will mean the impact to borrowers and customers will be limited.”