NatWest has enhanced its loan-to-income (LTI) calculations for residential capital and interest mortgages, enabling select borrowers to access loans up to five-and-a-half times their income.
For single or joint borrowers earning more than £40,000 and borrowing between 75% loan to value (LTV) and 90%, NatWest will offer them an LTI of up to five times.
Those on a sole income of more than £75,000 or a joint income of over £100,000 borrowing between 75% and 90% LTV can get an LTI of up to five-and-a-half times.
This will be subject to affordability and credit scoring.
Lloyd Cochrane, head of mortgages at NatWest, said: “Today’s move means we can support more of our customers to buy a home. It is the first of many improvements we are making this year.
“Whether our customers are looking to buy their first home or move along the property ladder, we are committed to making access to borrowing as inclusive as possible and this move [is] the latest step in that direction.”
Market Moves
Sponsored by Halifax Intermediaries
NatWest follows a number of lenders in adjusting LTI limits to enable certain borrowers to access larger loans, such as Loughborough Building Society, TSB and Hodge.
This comes as the government asked regulators to consider relaxing LTI multiples to encourage growth in the mortgage market and improve access to homeownership.
