NatWest Intermediary Solutions is set to lower its maximum loan-to-income caps on sub-85 per cent LTV residential loans.
From 13 October, the maximum LTI on loans of 75 per cent or lower will be cut from 4.99 to 4.45 times income.
Loans between 75.01 and 85 per cent LTV will be subject to a new maximum of 4.45 times income, down from 4.49.
There will be no changes to the maximum LTIs on loans above 85 per cent LTV, which remains at 4 times income.
All loans submitted by close of business on 12 October will be assessed on the current LTI maximums. The changes apply to residential applications only.
A spokesman says the decision was taken following a review of its “business mix”.
He adds: “We continue to place a strong focus on customer affordability. The loan-to-income maximum is just one measure we use to assess affordability and the changes have been incorporated into our affordability calculator that is automatically applied to the result a broker will get on screen.”
Chadney Bulgin mortgage partner Jonathan Clark says: “Their current income multiples are among the highest in the industry and coupled with their unusual policy of ignoring deductions for season-ticket loans/childcare costs/pensions/student loans means they are often offering way more than their competitors. Something had to give.”
