NatWest boosts mortgage affordability calculations to offer up to 5.5 times salary
NatWest for Intermediaries has boosted its loan-to-income calculations and confirmed it allows borrowers to access up to 5.5x salary mortgages.
Single or joint borrowers earning over £40,000 with a deposit of between 10% and 25% of the property value, could get a loan-to-income of up to five times through NatWest. Applicants earning over £75,000 or £100,000 jointly and borrowing between 10% and 25% of the property value could get an even higher loan-to-income of up to 5.5 times salary.
NatWest head of mortgage Lloyd Cochrane says: “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. This move is the latest step in that direction.”
Mortgage loan sizes are generally subject to affordability and credit scoring rules.
Lenders are improving mortgage affordability rules
NatWest is the latest lender to offer more generous loan sizes, after Marsden Building Society and TSB announced improvements. Loughborough Building Society has just increased its loan-to-value limit so borrowers with a 5% deposit can secure up to 5.5 times income multiple, which they previously required a 15% deposit.
The Intermediary magazine points out there is pressure on lenders to lower loan-to-income criteria after the Bank of England governor said “a public debate” is needed over the trade-off between higher repossessions and more people entering the mortgage market that lower stress tests may bring.
Earlier this week, Nationwide called on the government to review the industry’s loan-to-income mortgage cap to help more first-time buyers onto the property ladder.
Is it normal to be able to borrow 5.5 times salary?
Many big banks and building societies offer up to 5.5 times salary mortgages to borrowers generally when they are higher earners or working as professionals - like a doctor, dentist or vet.
One of the most generous income multiples is available through Nationwide for Intermediaries. Its Helping Hand product enables some borrowers to raise up to six times their salary when they take a five or ten-year fix.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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