NatWest increases LTI multiples, loan sizes and LTVs

The changes to its lending policy include enhancements to to its loan to income parameters.

For capital and interest (C&I) mortgages up to 75% LTV, maximum LTI multiple have increased to 5.5x income for a single applicant earning over £75,000 or joint applicants earning over £100,000 combined.

For new build buy-to-let applications for both houses and flats, NatWest has increased the maximum LTV from 65% to 75%.

It is also increasing maximum loan sizes for most residential LTV bands.

For residential mortgages up to 60% LTV, there will be an unlimited loan size for both C&I and interest-only loans, and at 75% LTV the new maximum loan size is £7.5m.

For C&I loans, the maximum loan size has increased to £2.55m at 80% and 85% LTV, to £750,000 at 90% LTV, and £570,000 at 95% LTV.

In addition, NatWest has changed its buy-to-let five-year stress rate from 4.5% to 4.75% and its buy-to-let like-for-like remortgage stress rate from 4.5% to 4.75%.