It’s been called a good thing, but experts have issued a note of caution as well
NatWest is the latest lender to offer mortgages up to six times income in a “positive move” for borrowers – but experts warn against risky lending. The bank announced that those earning £75,000 a year, or a couple earning £100,000 between them, can borrow up to six times their income for a 75% Loan to Value (LTV) and below.
This means a customer earning £75,000 could now potentially borrow up to £37,500 more. It follows similar moves by Barclays and Nationwide in the last few months.
Justin Moy, managing director at Chelmsford-based EHF Mortgages, said the move was positive.
He added: “The addition of NatWest into the 6x income arena is a positive move, matching other High Street lenders in their quest to lend more to the right profile of clients. Those with higher disposable incomes will benefit, while lenders will still need to demonstrate overall affordability at these elevated borrowing levels.
“We are still a million miles away from the days of self-certified income and mortgages without any checking, so this is not a return to ‘help-yourself’ mortgages, but where there is some extra affordability it can help eliminate the need to move every two or three years.”
Babek Ismayil, CEO at homebuying platform OneDome, said it would offer borrowers increased flexibility.
He continued: “NatWest’s move to offer income multiples of up to six times salary reflects how stretched affordability has become rather than a return to looser lending. In many high-cost areas, particularly across the South East, borrowers with solid incomes and good credit histories have increasingly found themselves blocked by traditional 4.5x or 5.5x caps, despite being able to comfortably service higher repayments.
“This change gives those households more flexibility, especially when paired with larger deposits and stringent affordability testing. However, it remains a targeted offering, not a blanket shift in policy. Lenders are still stress-testing carefully and factoring in cost-of-living pressures, so this is far removed from pre-2008 lending practices.
“While higher income multiples can help bridge the gap between wages and house prices, they also mean borrowers are committing a greater share of income to housing costs. The challenge now is ensuring this added borrowing power supports sustainable home ownership rather than simply pushing prices higher in already overheated markets.”
Omer Mehmet, managing director at Trinity Finance, said it could be “the difference between moving or staying put”.
He added: “NatWest’s move into higher income multiples reflects how stretched affordability has become for higher earners rather than a sudden loosening of standards. For borrowers with strong incomes and solid deposits, this added flexibility could be the difference between moving or staying put. Crucially, robust affordability checks remain in place, keeping this a measured step rather than a return to riskier lending.”
Richard Davidson, mortgage advisor at onlinemortgageadvisor.co.uk, said there is a worry it could spark more risky lending.
He continued: “6x income multiples for higher earners have often become a necessity to afford a house in certain areas, like the south east. Due to a lack of available housing, this is likely to become the norm as longer-term mortgages become more common.
“With a greater percentage of income going towards either rent or mortgage payments, borrowers will often feel that the cost is unavoidable. Lenders will offset risks by using increasingly sophisticated credit scoring and cost-of-living analysis, but there is a risk of this being a gateway to riskier lending after years of caution and restraint since 2008.”
Dariusz Karpowicz, director at Doncaster-based Albion Financial Advice, said this is a “significant shift”.
He added: “NatWest joins the affordability race, now offering up to 6x income multiples for higher earners with solid deposits. This marks a significant shift in lending criteria, making larger mortgage amounts accessible to those who previously hit the ceiling at 5.5x their salary.
“The move brings welcome relief for borrowers in high-cost areas, particularly those earning £75,000 or more who can now access an extra £37,500 in borrowing power. However, this isn’t a return to pre-2008 lending practices. Lenders still conduct rigorous affordability assessments.
“While higher income multiples help bridge the gap between wages and property prices, they also mean borrowers commit larger portions of their income to mortgage payments. The key question remains: are we addressing affordability issues or simply enabling people to stretch themselves further in an overheated market?”
Samuel Mather-Holgate, managing director & IFA at Swindon-based Mather and Murray Financial, said it’s positive news for homeowners.
He continued: “Lenders appetite for risk is returning and it’s good news for homeowners. With rates falling, income ratios can be stretched again and NatWest are the latest to improve their offering. This should make it easier for home mover or those looking to refinance or consolidate.”
Elliott Culley, director at Hayling Island-based Switch Mortgage Finance, said he is interested in what impact the move will have.
He added: “NatWest are dipping their toe in the water and currently only offering this for mortgage borrowers with larger deposits as you will need at least 25% to qualify. The salary requirements are also higher than other lenders, so it remains to be seen how much impact this will have.”
