Changes cover the minimum income requirement for interest only mortgages, the maximum loan-to-value (LTV) for new build houses and the loan to income maximum for higher value loans.
Interest only
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 changed.
New builds
The maximum LTV for a residential mortgage on a new build house is being increased from 80% to 85%. The LTV limits for residential mortgages for new build flats and buy-to-let mortgages on new build properties remain unchanged.
Higher value loans
The loan to income maximum for loans of more than £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.
NatWest Intermediary Solutions head of intermediary mortgages Graham Felstead said the changes were initiated by broker feedback.
Felstead said the lender was keen to continue its “fantastic growth” over the last four years and the changes would allow it to continue to lend responsibly but with more flexibility.
“New build is certainly a sector of the market that we would like increase our presence in,” he said.
“The improvements we are making should enable brokers to help more customers who are unable to raise a 20% deposit.
“Since bringing back interest only mortgages we have been satisfied with the quality of business and controls we have in place and are now comfortable to lower our minimum income requirement to make them accessible to more customers,” he added.
