April Mortgages has launched enhanced loan-to-income criteria meaning it can lend up to seven times a borrower’s income.

This applies on its 10 and 15 year fixed rate products.

Most lenders typically offer mortgages for sums which are 4.5 times borrowers’ incomes although Nationwide recently extended that to six times income.

The increased borrowing from April is available to applicants with a household income of £50,000 or more, offering up to 85% loan-to-value.

April says it’s made the move following the 

latest UK House Price Index showing buyers paying £268,000 for a typical home.

It says that at seven times income and 80% LTV over a 36-year term, a household earning £60,000 annually could access a mortgage of nearly £420,000 with its offering. It claims this is significantly more than the standard 4.5 times cap typically applied by most lenders.

Rachael Hunnisett, director of mortgage distribution at April Mortgages, says: “Affordability remains one of the biggest challenges for borrowers, with wage growth struggling to keep pace with rising house prices, making homeownership feel increasingly out of reach for many. 

“By increasing income multiples to up to 7x on our 10- and 15-year fixed products, we’re giving brokers the tools to open more doors for clients with strong incomes but limited borrowing capacity under lower LTI restrictions. 

“Longer-term lending brings payment stability and peace of mind and we’ve taken it further by removing the usual trade-offs. 

“Our products offer the security of a fixed rate, with the flexibility to move or repay without penalty, and rates that reduce as loan to value improves. It’s a pragmatic, future-facing, simple solution that gives advisers more room to manoeuvre in a market that demands it.” 

And James Pagan, director of product, portfolio and operations at April, adds: “Affordability challenges continue to dominate conversations between brokers and clients and we believe it’s time product design caught up with the structural realities of the housing market. 

“Our new 7x LTI proposition is made possible by the inherent strengths of longer-term fixed rates, which offer both payment stability and reduced refinancing risk.

“By aligning a higher income multiple with the security of a 10- or 15-year fix, we’re enabling brokers to serve clients who have strong earning potential but are constrained by outdated lending limits. 

“It’s a responsible, forward-looking product that reflects the way people live, work, and plan today and it adds a valuable option to the broker toolkit at a time it’s most needed.”