NatWest has introduced a new offer for customers earning over £150,000, enabling them to secure significantly larger mortgages. The lender has increased its maximum loan-to-income ratio for joint applicants in this income bracket, allowing some borrowers to obtain mortgages worth up to 6.5 times their income.
Key Details of the Offer
Couples with a combined income of £150,000 could potentially secure as much as £975,000 under the new terms. This move is seen as a competitive step by the high street lender to attract high earners.
Industry Reactions
Speaking to Newspage, Sarah Fox-Clinch, director at Fox Davidson, commented: "High street lenders are now competing hard in the large loan arena, and NatWest moving its joint LTI to 6.5x at 75% LTV is another positive step. High earners are good quality, low LTV borrowers, and lifting the income multiples is the simplest way for a lender to grow its book. Updates like this are music to my ears."
Riz Malik, an independent financial adviser at R3 Wealth, noted that banks are "trying to pull out all the stops to get Britain moving." However, he cautioned that stamp duty changes remain a far greater hurdle for the broader market. "Is it enough to get Britain moving? Not with the stamp duty noose around the neck of the UK property market," he said.
Hannah Vandervennin, director at The Mortgage Consultancy, added: "Pushing income multiples upward without loosening the LTV ceiling is moving one lever while the other stays bolted down."
Gaurav Shukla, chief executive at Home Me Mortgages, also weighed in: "Affordability is still driven by rates, confidence and whether monthly payments feel comfortable, not just maximum borrowing power."
