Atom Bank has made improvements to its maximum loan-to-income ratio (LTI) and loan-to-value (LTV) limits.
The lender has increased maximum LTIs for employed applicants with an annual income of £75,000 or more.
For loans with an LTV of 90% or less, Atom will now lend up to six times the applicant’s income, while for those looking to borrow with an LTV of more than 90%, it will lend up to 5.5 times the applicant’s income.
In addition, Atom has increased the maximum LTV available on flats, new-build flats and new-build homes in London and the South East.
For both existing homes and new-build homes, the maximum LTV has increased from 90% to 95%, while for new-build homes the maximum LTV has increased from 80% to 90%.
Richard Harrison, head of mortgages at Atom Bank, said: “First-time buyers are the lifeblood of the housing market – without them it doesn’t function properly. Yet today’s potential buyers face two key challenges: firstly in saving the initial deposit and secondly in meeting affordability requirements, which can limit the amounts they can borrow.”
“These changes aim to address these challenges, and mean we can support many more potential buyers, both first-time buyers and those looking to move up. Higher LTI caps are an effective way to lend responsibly to those who can actually afford the repayments, not just now but for years to come, while the new LTV caps for properties in the South East will see homes in this particularly expensive region opening up to more buyers.”