NatWest raises loan to income cap on loans under 85% LTV

Just six weeks after cutting them, NatWest Intermediary Solutions has increased its maximum loan to income (LTI) caps on residential loans under 85% LTV.

NatWest reduced its maximum LTI on loans of 75% LTV or less, from 4.99 to 4.45 times income in October this year. Loans that fell between 75.01% and 85% LTV were reduced from 4.49 to 4.45.

As from today, however the following now applies: loans of 75% LTV or lower will have a maximum LTI of 4.85, loans between 75% and 85% LTV will have a maximum LTI of 4.75 and loans of up to 90% LTV will remain at 4.25 LTI.

The new LTI caps are effective as from today. All loans submitted yesterday will be subject to the old LTIs.

A note to brokers from NatWest Intermediary Solutions, said:

“We use a number of measures to assess customers’ affordability through our online affordability calculator, with the loan-to-income amount being one of them.

“The loan to income change will be incorporated into the calculator and applied automatically.”

25th November 2015