Increasing our LTI ratio to help more homebuyers

In response to the challenging economic climate for homebuyers, we’ve now increased our maximum Loan to Income ratio (LTI) to help more borrowers.

If your clients are looking to take out a mortgage with The Nottingham, they can now borrow a maximum of 5.5x against their household income, up from 4.5x.

The new LTI increase is applicable to households with a gross annual income of over £75,000. This means households with a gross income of £75,000 can now borrow up to £412,500, a significant increase from the previous maximum of £337,500.

Our current affordability tests – covering income, expenditure and stressed interest rate – will remain in place to ensure that applicants do not borrow more than they can afford to pay back, risking mortgage defaults.

This announcement comes as the average asking price for a first time home reaches a new height of £224,963*, yet incomes are not rising in line.


“It’s imperative that we move with the ever-changing needs of our customers. We know that homebuyers are facing an extremely challenging economic environment, and we are committed to helping buyers navigate this period.

“We also recognise that rapid changes to the way we live and work mean that borrowers with non-traditional circumstances can find it difficult to get the mortgage they want. We hope that alongside our affordability criteria, increasing our LTI ratio will help more homebuyers on their journey."

* Source: Rightmove