NatWest Intermediary Solutions is introducing a four times loan-to-income cap and maximum term of 30 years for all mortgage loans of more than £500,000.
This change of policy is being introduced primarily to address the inflationary pressures being seen in London and will be applied in addition to the standard affordability assessment.
The change will come into force on 6 June.
NatWest Intermediary Solutions says it places a “strong focus” on affordability and already has measures in place to safeguard customers borrowing large amounts, for instance, reducing loan to values for larger loans. This measure adds to those safeguards and is targeted particularly at customers interested in the upper end of the London market, where there has been the most inflationary pressure.
The new policy will also be introduced to mortgages from RBS Intermediary Partners on the same date and to RBS and NatWest mortgages available through the Retail channels later this month.