West Brom Building Society has relaxed home lending rules for borrowers with smaller deposits by raising its loan-to-income limits, allowing them to borrow up to 27% more.  

The mutual says borrowers with total application incomes over £50,000 will now be able to borrow up to 5 times income, while those earning over £75,000 will see income multiples increase to 5.75 times. 

This rises from 4.5 times income in both cases. 

Eligible customers with a 10% deposit, the lender says, may be able to borrow up to 27% more on lending up to 90% loan-to-value.

A range of lenders, such as Nationwide, Newcastle Building Society and Precise, have lifted their LTI ratios after the Financial Policy Committee changed its rules to allow firms to underwrite more high loan-to-value lending in July.   

West Brom Building Society head of product Gareth Madeley says: “By extending higher income multiples on lending of up to 90% LTV, we’re giving customers the opportunity to access more funds, and for some, that could mean the difference between being able to own a home or not. 

“With affordability remaining a stretch for many, this move will enable more first-time buyers and next-time buyers to own the home they want, and we’re really supportive of that, providing it’s done in a way that remains affordable and responsible.” 

The lender adds that it is also lifting the amount it will lend at 90% LTV to £750,000 from £500,000, while lending at 95% LTV rises to £600,000 from £400,000.