From next Tuesday 24 November, Virgin Money will introduce a new loan-to-income cap for residential applications.

For customers with a joint allowable income of £50,000 or less, the maximum LTI will be capped at 4.49. In addition to basic pay, 100 per cent of pension and allowable benefit income will be used in the loan-to-income calculation.

Remortgage applications with no additional borrowing and customers already in the pipeline will not be affected by this change.

TSB is today reducing the maximum LTI multiple for lending above 85 per cent LTV, where the total income is more than £40,000, from 4.5 to 4.49.

The bank has also temporarily introduced new lending criteria for self-employed customers with the LTV now capped at 75 per cent and maximum LTI at 4.25.

Any DiPs for pipeline applications started before today, won’t be impacted by these changes.