NatWest increases mortgage income multiple to five-times salary
NatWest for Intermediaries has increased its maximum mortgage income multiple for borrowers with 25% deposits.
The bank raised the income multiple for applicants earning between £20,000 and £75,000 to 4.95 times single and joint incomes.
For clients earning more than £75,000, the maximum income has increased to a maximum of five-times salary single and joint incomes.
Aaron Strutt, product director at Trinity Financial, says: "NatWest has made changes to its affordability calculators so borrowers can get more generous mortgage loan sizes to bring the bank more in line with its competitors.
"Banks and building societies are providing mortgages between five and even six-times salaries for clients over £75,000 a year and the rates are competitively priced."
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NatWest is offering some of the most competitively priced mortgages in the market including a 1.19% two-year fixed rate. The mortgage reverts to the lenders 4.24% standard variable rate and the overall cost for comparison is 3.8% APRC. There is a £995 arrangement fee and applicants will need a 40% deposit to qualify. The maximum loan size is £10 million.
NatWest considers lending to people who work away for a number of weeks at a time but return to the UK when they are not working. They also lend to those who work away during the normal working week and return to the UK at weekends
The bank will not lend to people who work abroad and only return to the UK for holidays, are on secondments living permanently abroad for a short period and have bought a property abroad to live in.
The bank previously required applicants to be employed full-time by a multinational company and we needed to understand where their company’s head office was based. This no longer applies.
Self-employed income can be considered where their company is based in the UK and the Republic of Ireland (including Partnerships/Directorships).
Assuming all other criteria is met, it is not a requirement that the applicant pays their income tax in the UK.
The currencies acceptable include Great British Pound, Euro, Australian Dollar, Bulgarian Lev, Canadian Dollar, Croatian Kuna, Czech Koruna, Danish Krone, Hungarian Forint, Japanese Yen, New Zealand Dollar, Norwegian Krone, Polish Zloty, Romanian Leu, Singapore Dollar, Swedish Krona, Swiss Franc and United States Dollar.
NatWest provides interest-only mortgages to borrowers providing they have a minimum income of £75,000 not including discretionary bonuses, retained profits, additional income from 2nd jobs, benefit payments or any other income source.
For joint mortgage applications at least one applicant must earn £75,000 and if repayment strategy is Sale of the Property interest-only amount cannot exceed 50% loan-to-value. A further 25% loan-to-value can be borrowed on a capital repayment basis.
For residential interest-only mortgages the maximum term of 35 years reducing to 30 years if a loan is more than £500,000.
NatWest's interest-only mortgages are available for borrowers aged between 18-70 and they are available for purchase purchases (including first-time buyers), re-mortgages, additional borrowing and porting.
Where the sale of main residential property is the repayment strategy the entire mortgage is on interest-only the property must have a minimum equity of £200,000. Where there is an element of interest only and capital repayment the bank will need to be happy that there will be a minimum of £200,000 equity at end of term when capital and interest element has been repaid.
Trinity Financial has access to a wide range of lenders offering interest-only mortgages.
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