Leeds Building Society extends mortgage loan-to-income to 6x – but brokers warn "it comes with real risk"
Leeds Building Society (BS) has extended its mortgage loan-to-income to 6x – but brokers warn "it comes with real risk".
Leeds BS has announced it has boosted its Income Plus range — increasing the loan-to-income (LTI) from 5.5x to 6x and opening it up to home movers and remortgagers, not just first-time buyers (FTB).
This follows similar moves by Natwest and Barclays.
Up to 6x LTI is available for FTBs, home movers and remortgages with a minimum household income of £75,000.
Up to 5.5x LTI is available for home movers and remortgagers with a minimum household income of £50,000 and FTBs with a minimum household income of £30k.
You need up to 95% loan-to-value (LTV) for FTBs and up to 90% LTV for home movers and remortgagers.
It is available for new builds and self-employed applicants, with products available on five-year fixed rate deals.
Martin Rayner, Director at Compton Financial Services, warned people to only borrow what they can afford.
He said: "This is lenders pushing affordability further – but that comes with real risk. Yes, greater flexibility helps some buyers, especially in higher-priced areas. But moving to 6x income, combined with today’s higher rates, means significantly larger monthly commitments locked in for five years.
"I would recommend people think very carefully about this. Just because you can access 6x income doesn’t mean you should — a lower mortgage may be far more sustainable. You also need to consider what the next five years might look like.
“Potential tax increases, particularly for £75,000+ households, alongside rising living costs and wider uncertainty, could all put pressure on finances. This isn’t just about getting the mortgage – it’s about being able to live with it comfortably."
David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, said it is a sensible move by Leeds BS.
He added: "As a mortgage adviser, I welcome any lender that gives me more tools to help clients who are doing everything right but still can't afford the home they need. Leeds expanding Income Plus to 6x LTI for movers and remortgagers is, on that level, a practical and sensible move.
"However, I'd be doing my clients a disservice if I didn't acknowledge the bigger picture. The fact that 6x income multiples are becoming a standard feature of the mortgage market tells us something uncomfortable about where house prices are relative to earnings.
“We're not fixing the affordability problem but finding ways to work around it."
Elliott Culley, Director at Hayling Island-based Switch Mortgage Finance, said it was a positive move.
He added: “Leeds have expanded their higher borrowing options from just first time buyers to homemovers and remortgages which is a positive move and will help more borrowers achieve their objectives.”
While Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said.
He added: "Leeds' decision to raise its income multiplier to six times earnings prompts questions about prudence in a higher-rate environment. While it may help support affordability and stimulate a subdued housing market, it also means borrowers could be taking on larger loans at elevated interest costs, increasing potential financial strain if conditions worsen.
"There’s also a competitive dynamic at play. With lenders under pressure to boost or maintain loan volumes, higher income multiples may be used to attract borrowers and revive activity. The key issue is whether this is being done alongside rigorous affordability checks or signals a broader loosening of lending standards.
"While the move may provide short-term support to the market, it needs to be carefully balanced against longer-term risks for both borrowers and lenders."
