NatWest raises max LTI to 6.5x for high earners

NatWest has increased its maximum loan-to-income ratio to 6.5x for joint borrowers earning over £150,000, marking the lender's fourth LTI adjustment this year.

NatWest has raised its maximum loan-to-income ratio to 6.5x for joint borrowers earning over £150,000, in what the lender confirmed to brokers by email today. The change is its fourth LTI adjustment this year and extends borrowing capacity for higher earners seeking larger mortgage loans. The upper loan-to-value limit for those borrowing at the maximum 6.5x multiple is restricted to 75%.

The move positions NatWest alongside HSBC, which also lends up to 6.5 times income. Teachers Building Society and April Mortgages go further still, offering up to seven times salary for eligible borrowers. Nationwide and Barclays lend up to six times income, while Halifax, TSB and Santander cap their maximum at 5.5 times.

Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said: "NatWest's latest criteria changes for joint borrowers are another 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.

"Our research found that half of aspiring first-time buyers are unaware that their borrowing power has improved, suggesting many may still be making decisions based on misconceptions around how much they could borrow. 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."