Leeds Building Society has expanded its income and mortgage range and expanded its higher income multiples to support homeowners looking to take their next step on the property ladder.
Martese Cardboard
The mutual has improved its affordability assessments so that eligible applicants can borrow up to six times the loan-to-income.
This comes after research from the association found that 70% of recent first-time buyers say their current living situation has affected their plans to have more children, and 65% feel that moving up the property ladder is currently out of reach for them.
Meanwhile, 62% of recent buyers feel they have or will outgrow their home within the first three years of homeownership.
Leeds Building Society launched its income-plus range of mortgages in late 2024, offering higher income multiples alongside a lower minimum income threshold.
Under the latest improvements, ‘next steppers’ with a single or joint income of more than £75,000 can borrow up to six times their income, while applicants with an income of more than £50,000 can borrow up to five and a half times their income as they move up the ladder.
Leeds Building Society Mortgage distribution director Martese Carton says: “We have been supporting members to buy their own home for more than 150 years, but our research shows that a significant number of recent first-time buyers expect to outgrow their home much faster than expected.”
“The increasing price gap between first and second homes poses a real affordability challenge. Many households only need one additional bedroom, but the price increase can be significant and difficult to overcome below standard income multiples.”
“By expanding our Income Plus range, we want to offer next movers more borrowing flexibility where it is affordable, supporting more sustainable moves and keeping the housing market flowing.”