Halifax is increasing its maximum loan-to-income multiple from 5x earnings to 5.5x from Thursday.

The top LTI multiple will apply to those earning more than £75,000 who are borrowing up to £1m at less than 75% LTV.

However, for the self-employed or anyone using an affordable housing scheme the LTI multiple remains capped at 4.49x earnings.

Halifax is also making the following changes to its LTI structure:

• Borrowers earning less than £40,000 will now be subject to an LTI cap of 4.49x income, whereas previously this only applied to those earning less than £30,000.
• For borrowers earning more than £75,000 and where their LTV is between 75.01% and 85% and loan size is between £750,000 and £1m, the max LTI is being increased from 4x to 4.49x.
• Borrowers with an income over £75,000 and an LTV between 85.01% and 95% and loan size between £500,000 and £750,000, the max LTI is being increased from 4x to 4.49x.

Trinity Financial product and communications director Aaron Strutt says: “Many borrowers are not aware that lenders offer more generous income multiples, particularly to higher earners. 

“They approach their bank or building society and assume they are getting the most generous loan based on their income and overall affordability. “More lenders are providing over five times salary mortgages to help borrowers get sufficient mortgages to buy the properties they want. 

“Without these products they may well struggle to get on the property ladder, especially if they have credit commitments or children.”

Carl Summers Financial Services financial adviser Scott Taylor-Barr adds: ”While any improvements are always welcome, I’m not 100% sure it’s the people with incomes over £75,000 that really need the extra help.”