The Bank of England continues to consult on measures to curb risky lending, including LTI caps of four-and-a-half times income on 15% of a new loan book for each lender.

It said: “This change to our residential lending policy is in line with other competitors and current market conditions and reflects our commitment to sustainable and responsible lending.”

Currently, the restriction will apply to any lender which advances more than £100m of gross mortgage lending, which the BSA has argued will penalise fledgling buyers.

Accord said: “As a responsible lender, we take into account a number of considerations on the ability of all our applicants to afford their loan. We do have in place robust and stringent procedures to allow us to assess a borrower’s ability to repay should interest rates increase substantially in the future.”

This change will not impact any applications which have already passed the AIP stage prior to 1 September 2014.

Announced changes include Lloyds Banking Group and Royal Bank of Scotland moved to cap loans over £500,000 at 4 times income initially, with RBS announcing an LTI limit of 4.99 times income for all buy-to-let applicants.

Nationwide has applied a limit of 4.75 times income across all residential applications and Aldermore Bank also imposed an LTI ratio of 4.5 times income for loans above 85% Loan to Value.