More first-time buyers are borrowing bigger multiples of their income. Here is what has changed, and how to tell whether a higher loan-to-income (LTI) mortgage is right for you.
What the new figures show
FCA data obtained by mortgage network Stonebridge through a Freedom of Information request, reported by Mortgage Solutions on 5 November 2026, shows that in the year to the end of June:
- First-time buyer loans at 5.5 times income or more rose 142% to 7,621.
- Loans between 4.5 and 5.5 times income rose 36% to 48,839.
- In total, first-time buyer loans at 4.5 times income or more rose 45% to 56,460.
The change follows the regulators' 2025 move to let lenders apply to go beyond the old cap, which limited each lender's loans above 4.5 times income to 15% of new lending. Mortgage Solutions reports that the rule changes became permanent in October 2026.
Why it matters now
The Bank of England raised Bank Rate from 3.75% to 4% on 5 November 2026, its first rise since 2023. Higher rates make affordability checks tighter, so the lender you choose, and how your income is presented, can make a real difference to how much you are offered.
Higher-LTI mortgages are not offered to everyone. Lenders typically look for a minimum income, a clean credit record, a stable job and, in many cases, a larger deposit. Policies differ widely between lenders, and some professions or graduate schemes may qualify for enhanced income multiples.
Is a bigger loan the right move?
Being able to borrow more is not the same as being comfortable with the repayments. A larger loan means higher monthly costs and more exposure if rates rise further when your first fixed deal ends. A good adviser will look at both: what lenders will lend, and what you can comfortably afford.
Quick tips
- Check your credit file early and fix any errors before you apply.
- Keep payslips, P60s and bank statements ready; lenders want a clear picture of your income and spending.
- Pay down card balances and avoid new credit or buy now, pay later in the months before you apply.
- Get an agreement in principle before you view seriously, so you know your realistic budget.
- Run your budget at a higher rate than today's, so a future rise does not catch you out.
Want to see where you stand? Read our guide to how much you can borrow, see how we helped a Croydon professional secure a higher income multiple, or check your credit before you apply. Our CeMAP-qualified advisers compare lenders across the market to find the right fit for your circumstances.
Sources
- Mortgage Solutions: High-LTI lending more than doubles in 12 months (5 November 2026)
- Investment Week: Bank of England hikes rates to 4% in first rise since 2023 (November 2026)
- FCA: Mortgage rule review
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.