Mortgages  

The Cambridge to lend up to five times income

The Cambridge to lend up to five times income

The Cambridge Building Society is now accepting residential lending applications from borrowers looking to borrow five times their income.

The changes are designed to support homebuyers with a minimum income of £60,000, who are purchasing a property up to 80 per cent loan to value (LTV) and have no unsecured debt except for student and car loans.   

The home loan is particularly aimed at those wishing to move up the housing ladder, but will be valid across all purchase products.

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Tracy Simpson, head of lending at the Cambridge, said: "We recognise the challenges homebuyers looking to move up the housing ladder are facing and have been looking at ways to help them.

"Their needs are different to those of first time buyers and their often higher income combined with previous experience of running a home and maintaining a mortgage means we can be more flexible with how much we can lend to them."

This comes as the latest UK house price index from the Office of National Statistics found the average property price in the East of England is currently £290,341 and prices have seen an annual increase of 5.2 per cent, outstripping growth seen in London and the South East.  

Scott Gallacher, an adviser with Rowley Turton, said: "As interest rates have fallen the old three- to four-times income models are arguably out of date. What matters now is the affordability of the monthly repayments, as acknowledged by the current income affordability rules.

"Provided the Cambridge’s mortgages are on a repayment basis and are on a longer fixed rate of five-years plus, then I think they are a welcome addition."