NatWest increases income multiples to help higher earners secure larger mortgages
NatWest has made a significant change to its mortgage affordability policy, increasing the maximum loan-to-income multiple available to higher-earning joint applicants.
The lender has confirmed that joint applicants earning £150,000 or more may now be able to borrow up to 6.5 times income, provided they are borrowing at 75% loan-to-value or below. This means applicants will usually need at least a 25% deposit or equity to access the most generous borrowing levels.
A couple earning £150,000 a year could opt to borrow the maximum £975,000 in order to buy a £1.3m home at 75 per cent loan-to-value. This is providing they have a large enough deposit, a good enough credit score and minimal credit card payments or cars on finance. A five-year fixed rate of just below 4.7% with NatWest, with a £1,495 fee, would equate to paying £5,525 a month on a 25-year repayment term.
NatWest has often been one of the more competitive high street banks for mortgage rates, and this change makes its proposition more appealing for borrowers who need a bigger loan to buy the property they want.
Why has NatWest increased its mortgage income multiples?
NatWest is clearly targeting higher-earning borrowers who are keen to maximise their borrowing potential. Affordability remains one of the biggest issues in the mortgage and property markets, especially in London and the South East, where property prices can be high even for applicants with strong incomes.
This is also NatWest’s fourth loan-to-income enhancement this year, suggesting the bank is keen to support more borrowers who need larger mortgage loans. Trinity Financial’s existing mortgage research shows NatWest had already been listed among the lenders offering higher loan-to-income options, while other lenders such as HSBC have also moved into the 6.5 times salary market for selected applicants.
How much could you borrow at 6.5 times salary?
A 6.5 times salary mortgage can make a substantial difference to the maximum mortgage available.
| Joint income |
4.5x income |
5.5x income |
6x income |
6.5x income |
| £150,000 |
£675,000 |
£825,000 |
£900,000 |
£975,000 |
| £175,000 |
£787,500 |
£962,500 |
£1,050,000 |
£1,137,500 |
| £200,000 |
£900,000 |
£1,100,000 |
£1,200,000 |
£1,300,000 |
| £250,000 |
£1,125,000 |
£1,375,000 |
£1,500,000 |
£1,625,000 |
These figures are only examples. Mortgage lenders still run full affordability checks, including credit commitments, dependants, mortgage term, deposit size, credit score and the type of income being used.
Aaron Strutt, product director at Trinity Financial, says: “This is an unexpected move from NatWest, and it makes the bank’s proposition more appealing to higher earners looking for larger mortgage loans, especially as NatWest often has the most competitively priced mortgage rates.
“NatWest has always been a relatively generous lender, but this policy change moves it closer to the top of the income multiple market for high-earning borrowers. It is now more generous than many other banks and building societies for applicants who meet the income and loan-to-value requirements.
“That said, borrowers need to think carefully before taking on such a large mortgage. Even applicants earning £150,000 or more must be comfortable with the monthly repayments, the impact of future rate changes and the longer-term commitment of carrying a bigger debt.
“For many buyers, the issue is not that they want to borrow recklessly. They simply need a slightly more generous loan size to buy the property they want. NatWest’s change could help those applicants, particularly in higher-value areas where affordability is still a major challenge.”
Is NatWest now one of the most generous high street mortgage lenders?
For higher-earning joint applicants with a sizeable deposit or equity, NatWest’s new policy is highly competitive. A 6.5 times income multiple puts it among the more generous mainstream lenders for borrowers looking to maximise their mortgage loan size.
HSBC also advertises that Premier customers may be able to borrow up to 6.5 times income, subject to criteria and affordability checks. This shows that some major high street lenders are becoming more comfortable offering larger income stretch mortgages to selected customers.
However, the right lender will depend on the applicant’s income structure, deposit, credit profile and property type. Some borrowers may find another bank, building society or specialist lender offers a better result, particularly where bonus income, self-employed income, professional income or complex earnings are involved.
Do you need to earn £150,000 to get a higher income multiple mortgage?
No. While NatWest’s most generous 6.5 times income option is aimed at higher-earning joint applicants, there are other lenders offering enhanced income multiples to different types of borrowers.
Some lenders offer five times, 5.5 times, six times or even higher income multiples to first-time buyers, professionals or applicants meeting specific criteria. Trinity Financial’s mortgage research shows there are various higher-income multiple options across the market, although many come with income thresholds, deposit requirements or product restrictions.
This is why it is important not to rely on one lender’s affordability calculator. The difference between lenders can be tens or even hundreds of thousands of pounds.
Should you borrow 6.5 times your income?
Borrowing 6.5 times income can help buyers purchase the home they want, but it should be approached carefully.
A larger mortgage means higher monthly repayments, less disposable income and greater exposure if rates rise in the future. Borrowers should consider whether they could still afford the mortgage if their circumstances changed, if one applicant stopped working, or if mortgage rates were higher when they next remortgage.
The cheapest lender is not always the best lender if it will not lend enough. Equally, the banks and building societies offering the biggest mortgage are not always the right choice if the repayments feel too stretched.
How Trinity Financial can help
Trinity Financial regularly helps higher earners, professionals, first-time buyers, home movers and remortgage customers compare lenders offering larger mortgage loans.
Our brokers can check NatWest’s affordability alongside other banks and building societies to see which lender offers the right balance of loan size, interest rate, criteria and flexibility.
For borrowers seeking a larger mortgage, the key is to compare the market properly rather than assuming one affordability calculator gives the final answer.
Speak to a Trinity Financial adviser today
The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.
Call Trinity Financial on 0808 1642174 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar
The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
FAQs
Can NatWest offer 6.5 times income mortgages?
NatWest has increased its maximum loan-to-income multiple for eligible joint applicants earning £150,000 or more. The highest multiple may be available up to 75% loan-to-value, subject to full affordability checks and criteria.
Do I need a 25% deposit for NatWest’s highest income multiple?
The enhanced 6.5 times income option is available at 75% loan-to-value or below, which usually means borrowers need at least a 25% deposit or equivalent equity.
Which lenders offer 6.5 times salary mortgages?
NatWest and HSBC are among the lenders offering up to 6.5 times income for selected applicants, subject to criteria. Other lenders may offer five times, 5.5 times or six times income depending on income, deposit, occupation and borrower profile.
