NatWest has implemented various changes to its lending policy including an update to its loan-to-income (LTI) parameters. 

For capital and interest mortgages up to 75% loan-to-value (LTV), NatWest has increased its maximum LTI multiple to 5.5x income for a single applicant earning over £75,000 or joint applicants earning more than £100,000 combined. 

For new build buy-to-let (BTL) applications for both houses and flats, the lender has increased its LTV criteria. 

The maximum LTV is increasing from 65% to 75% for new build BTL properties. 

Meanwhile, NatWest is also increasing its residential maximum loan sizes for most LTV bands, which it says could up the maximum loan amount that customers are able to borrow. 

The lender’s BTL five-year stress rate has gone up from 4.5% to 4.75% while the BTL like for like remortgage stress rate has risen from 4.5% to 4.75%. 

NatWest says the new LTI increases come into effect now for all new and pipeline cases. 

The BTL changes were effective from today, and any decisions in principle or full mortgage applications submitted prior to now will have the previous values applied as they were at the original submission. 

The same will also apply to the new maximum loan amounts, the lender notes.