The specialist lender, owned by Bradford & Bingley, has raised the primary income multiple for all 100 per cent-plus mortgages from 3.25 to 3.75.
Mary Sung, product development manager at Mortgage Express, said: “The increase in income multiples is in recognition of the low, stable interest rate environment we’re currently in. Homebuyers can afford to borrow more at current and foreseeable interest rates.”
Mortgage Express has also launched a 3-year fix product in the 100 per cent-plus range at a pay rate of 5.65 per cent on completions from 1 February 2004.
The Council of Mortgage Lenders (CML) recently announced that first-time buyers accounted for a historic low of 9 per cent of gross lending in 2003.
In an attempt to stimulate the first-time buyer market, Northern Rock and Portman Building Society have also loosened their income multiple criteria in the last fortnight, which Ray Boulger, senior technical manager at Charcol, said will go some way to brighten prospects for first-time buyers.
“Mortgage Express don’t charge borrowers a MIG and all their deals are flexible, so putting income multiples up to 3.75 is very helpful. At 5.65 per cent, the loan is also certainly a competitive one.”
