Leeds Building Society has announced that joint or single applicants earning £30,000 per year will now be able to apply for a mortgage at that income level.

The reduction from £40,000 annual income comes after the lender was given permission by the Bank of England to exceed a limit of 15% of its lending being at or equal to 4.5 times borrowers’ incomes.

The society’s changes on minimum income apply to all lending, including 5% deposit mortgages and its Income Plus range aimed at first-time buyers.

Single or dual applicants earning £30,000 per year may be eligible to borrow £165,000 with an Income Plus mortgage from the society compared to £134,700 previously, a difference of £30,3001, subject to standard affordability checks.

With a 95% loan to value mortgage, a borrower on an income of £30,000 would be able to purchase a property worth up to £173,000, compared to £141,000 before.

Leeds BS has also lowered its stress rate level to increase its lending ability, working in tandem with a range of initiatives to support first time buyers.

Commenting on the changes Leeds Building Society’s director of mortgages and savings, Matt Bartle, said: “We welcomed the decision to consider allowing more high loan-to-income on a lender-by-lender basis and are very pleased to have gained the Bank of England’s permission.

“Lowering our minimum income requirements brings the dream of homeownership a step closer for more borrowers, including many earning below national average earnings.”