Barclays has cut its loan to income (LTI) for all residential cases that have not yet gone to offer to a maximum of 4.49 times income.

The LTI is the maximum mutiple of the applicant’s income that the lender is prepared to offer.

For borrowers with a loan to value (LTV) above 90 per cent and joint income of £50,000 or less, the new LTI will be even tighter, at four times income.

This limit will also apply to applications where there is a debt to income ratio of 20 per cent or more.

In a message sent to mortgage brokers, the lender said the LTI cut would also affect cases that have already gone to offer, where a material change has occurred that was reported after 28 August.

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Barclays listed seven examples which it considered to be a material change in circumstances:

• An increase to the mortgage term
• An increased loan amount
• A change that results in increased outgoings/expenditure, for example adding a commitment or financial dependant
• A reduction to the stated income
• An increase to LTV
• A change of repayment type
• A change of borrower.

A Barclays spokesperson said: “We regularly review our lending policies and today have made some changes to loan-to-income multiples.”

In the note to advisers the lender said: “These changes also apply to any application that has been created and not submitted and to those that have been submitted but are yet to receive an offer.”