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NatWest to lower minimum income for Interest Only, increase New Build houses maximum LTV and improve LTI maximums for larger loans

12 May 2017

Natwest

NatWest have reviewed their lending policies and key market segments, and they are making changes to their lending criteria in a number of areas from Friday 12 May. This includes the minimum income requirement for Interest Only mortgages, the maximum LTV for New Build houses and the loan to income maximums for larger loans. 

Interest Only minimum income

The minimum income requirement from at least one applicant for a residential Interest Only mortgage is being reduced from £100,000 to £75,000. The usual income types, except discretionary bonuses, can be considered and will not be changing. 

New Build houses maximum LTV

The maximum LTV for a residential mortgage on a New Build house is being increased from 80% to 85%. The maximum LTV for residential mortgages for New Build flats will remain at 75%. There are no changes to the LTV limits for buy-to-let mortgages on New Build properties. 

Loan to income maximums

Currently, the loan to income maximum for loans of more than £500,000 is four times income. From 12 May, the loan to income maximums for loans of over £500,000 will be raised for all LTV bands up to 90% LTV, to match the current limits for loans of £500,000 or less. Please note, the maximum loan to income for loans over 90% LTV remains at four times income, reflecting their standard policy.


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