NatWest raises mortgage income multiple to 6 times salary for those earning over £75,000 or £100,000 joint
Quick Summary
NatWest is the latest bank to offer six-times single- and joint-salary mortgages to help applicants raise more money to get on the property ladder. Nationwide for Intermediaries, Bank of Ireland Bespoke, Kensington, and Newcastle for Intermediaries are just some of the lenders offering six-times salary mortgages. HSBC also recently started offering 6.5x salary mortgages to higher earners! Click here to read our guide for up to six times salary mortgages.
NatWest offering higher mortgage income multiples
NatWest is making changes to its residential Loan-to-Income (LTI) calculations, enabling many homebuyers and remortgaging customers to access larger mortgage loan sizes. The bank consistently offers many of the cheapest fixed- and tracker-rate mortgages available in the market.
Anyone applying for a NatWest mortgage earning over £75,000 or £100,000 jointly will now be able to access up to 6.0x income, up from 5.5x, provided they have a deposit of at least 25% and they have a good credit score. For single or joint applicants earning over £40,000, the income multiple is also being raised to 5.5x times salary from 5.0x again when they have a deposit of at least 25%. These changes only apply to capital and interest mortgages, although higher-income multiple interest-only mortgages are available to borrowers with a clear interest-only repayment strategy.
What this income multiple change could mean to NatWest customers: A customer earning £75,000 a year could now potentially borrow up to £37,500 more under the updated mortgage income multiple calculations than they could before this change.
Aaron Strutt, product director at Trinity Financial, says: "Nationwide recently made their 6 times multiple more widely available, so it is now an option for other borrowers, not just first-time buyers locking into five or ten-year fixes. When more of the larger lenders start offering higher income multiples, it puts pressure on the remaining lenders that don't offer such large income stretches.
"There is no point in going to a lender offering a super cheap rate if it will not offer a sufficiently large mortgage to get the property you want to buy. All of these changes to income multiples are a game-changer for the mortgage market and those keen to get on the property ladder. Many of the smaller building societies and specialist lenders have been offering up to six times salary for years, but the acceptance criteria was not widely known about."
What mortgage income multiples do the other mortgage lenders use?
- Halifax up to 5.5 times salary
- Santander up to 5.5 times salary
- Barclays up to 6 times salary
- Nationwide up to 6 times salary
- HSBC up to 6.5 times salary
- TSB up to 5.5 times salary
- Bank of Ireland up to 6 times salary
- Teachers up to 7 times salary
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The information contained within was correct at the time of publication but is subject to change.
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