Barclays has introduced new maximum income multiples for residential borrowers.

The changes apply to all new applications from today, but pipeline cases  based on previous criteria will be honoured.

In an email to brokers, Barclays set out the new multiples for a variety of scenarios:

• For single applicants earning more than £75,000 and joint applicants earning more than £100,000 borrowing up to 85 per cent loan-to-value on a repayment basis, Barclays will consider lending up to 5.5 times income.
• For those with a joint income over £60,000 borrowing up to 85 per cent LTV, the loan-to-income ratio will be capped at 5 times income.
• Applicants requiring an LTV over 90 per cent with joint income below £60,000 will be subject to an LTI capped at 4 times income.
• Those with a debt to income ratio of more than 20 per cent will also have an LTI cap of 4 times income.
• Help to Buy borrowers and all other scenarios will see LTI capped at 4.49 times income.
• Borrowers using Barclays’ Family Springboard mortgage with a joint income over £60,000 will be able to borrow up to 5.5 times income.

The lender is making a number of other criteria changes today.

For interest-only borrowers it is removing the £200,000 minimum loan size and for those on a part and part arrangement the maximum LTV will increase from 75 to 85 per cent.

The lender is removing the requirement that non-Barclays customers must have worked for their current employer for three consecutive months prior to application. 

Applicants must still have been employed for three months, but not necessarily with the same employer.

Where time with current employer is less than three months, a full 18-month employment history must be given and the case will be referred for manual underwriting.

Barclays has also clarified its position on housing benefit.

When assessing affordability, housing benefit can be considered if the benefit will continue after the new mortgage completes. 

However, it notes that in the majority of residential purchase applications, the benefit will cease when the customer moves out of rented accommodation and, in those cases, should not be considered sustainable.