NatWest intermediary Solutions is making changes to its lending criteria in a number of areas from Friday 12 May, following a review of its lending policies and key market segments. These changes cover the minimum income requirement for Interest Only mortgages, the maximum LTV for New Build houses and the loan to income maximums for higher value loans

The minimum income requirement from at least one applicant for a residential Interest Only mortgage is being reduced from £100,000 to £75,000. The usual income types, except discretionary bonuses, can be considered and will not be changing.

The maximum LTV for a residential mortgage on a New Build house is being increased from 80% to 85%. The maximum LTV for residential mortgages for New Build flats will remain at 75%. There are no changes to the LTV limits for buy-to-let mortgages on New Build properties.

Currently, the loan to income maximum for loans of more than £500,000 is capped at four times income. From 12 May, the loan to income maximums for loans of over £500,000 will be raised for all LTV bands up to 90% LTV, to match the current limits for loans of £500,000 or less.

Graham Felstead, Head of Intermediary Mortgages, said, “We are keen to continue the fantastic growth in lending we have enjoyed over the past three or four years and these carefully considered changes to our criteria ensure we still continue to lend responsibly while providing brokers with more flexibility to recommend NatWest to their customers. New Build is certainly a sector of the market that we would like increase our presence in. The improvements we are making should enable brokers to help more customers who are unable to raise a 20% deposit. Since bringing back Interest Only mortgages we have been satisfied with the quality of business and controls we have in place and are now comfortable to lower our minimum income requirement to make them accessible to more customers.

“Our business is grounded in the dialogue we hold regularly with representatives from broker firms. The three enhancements we have made are a direct result from the feedback we received, so I am delighted that we have been able to deliver on them.”