LTI ratios demanded by mortgage lenders 'not as high as people think'

Date:Thursday 9th July 2009
Author: Susanna Kavka

The loan-to-income (LTI) ratios demanded by mortgage lenders in the UK are not as high as consumers believe.

This is the claim made by, which said that the average home loan provider will currently offer around four times an individual's annual income.

However, the average LTI ratio which consumers think mortgage lenders require stands at 3.1, which is a rise from the 3.2 recorded during the first quarter of the year.

Meanwhile, 33 per cent of people polled reported a belief that it is only possible to get between 0.5 and 2.5 times an annual salary, compared with 31 per cent during the first three months of 2009.

In response to the figures, chief executive David Elms said: "The mortgage market has been going through tremendous change over the past year and lending criteria certainly isn't what it used to be. There is a lot of consumer confusion out there."

According to the Council of Mortgage Lenders, access to mortgages at higher loan-to-value and LTI ratios is to expand over coming months.