From Wednesday 24 February, we will be lowering the loan to income maximum on mortgages between 75.01% - 85% LTV to 4.45 from 4.75 times income. No changes are being made to the loan to income maximum for mortgages below 75% LTV or above 85% LTV. These changes will also be implemented across NatWest's retail businesses at the same time.
We use a number of measures in assessing customer's affordability through our affordability calculator with the loan to income amount being one of them. This loan to income change will be incorporated into the calculator and applied automatically so there is nothing extra that brokers need to do.
All applications submitted by close of business on Tuesday 23 February will be assessed on the current loan to income maximums with all new business submitted from Wednesday 24 February being assessed on the new loan to income basis.