NatWest has boosted its loan-to-income calculations for residential capital and interest mortgages to allow borrowers access to up to 5.5x multiples. 

Single or joint borrowers earning over £40k and borrowing between 75% and 90% loan-to-value, could get an LTI of up to 5 times. 

Those earning over £75K sole income/£100k joint income and borrowing between 75% and 90% LTV could get an LTI of up to 5.5 times.

These LTIs are subject to affordability and credit scoring. 

NatWest head of mortgage Lloyd Cochrane says: “Today’s move means we can support more of our customers to buy a home. It is the first of many improvements we are making this year.”

“Whether our customers are looking to buy their first home or move along the property ladder, we are committed to making access to borrowing as inclusive as possible and this move is the latest step in that direction.”

NatWest is the latest lender to enhance its LTI criteria after Marsden Building Society, Loughborough Building Society and TSB recently announced changes. 

There is pressure on lenders to lower LTI criteria after the Bank of England governor said “a public debate” is needed over the trade-off between higher repossessions and more people entering the mortgage market that lower stress tests may bring.

Earlier this week, Nationwide called on the government to review the industry’s loan-to-income mortgage cap in a bid to help more first-time buyers onto the property ladder.