Joint applicants with a combined income of £150,000 or more can now access mortgages up to 6.5 times their income. This enhanced borrowing will be available up to 75% loan to value (LTV).
NatWest said this was the fourth change to its LTI this year, which reflected its flexibility for borrowers looking to maximise their borrowing potential.
At the start of the year, it introduced an LTI ratio of six for sole applicants earning at least £75,000 up to 75% LTV and joint applicants with a combined income of at least £100,000.
The lender also raised the LTI to 5.5 for remortgage borrowers earning at least £40,000.
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau (MAB), said the change was a sign of how “parts of the mortgage market are continuing to evolve to support today’s buyers, particularly those facing affordability pressures in higher-cost areas”.
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The advice firm’s research showed that half of aspiring first-time buyers were not aware of the changes to borrowing power, meaning some could be making decisions based on misconceptions.
Geddes said: “While affordability challenges certainly remain, growing lender flexibility means it’s becoming increasingly important for buyers to reassess what may now be possible based on their individual circumstances.
“Speaking to a mortgage broker now can help aspiring homeowners better understand the options available to them, and whether they may now be closer to buying than they realise.”
