What the new lending limits really mean for borrowers, and why the deposit still does the heavy lifting.
NatWest has once again expanded how much it is willing to lend, raising its maximum loan-to-income (LTI) ratio for higher earners. It is the lender’s fourth change to its income multiples this year, and it positions NatWest as one of the most generous mainstream lenders for borrowers with strong incomes. The headline figures are eye-catching, but as is so often the case in mortgage lending, the detail beneath the headline matters far more than the number itself.
Here is what has actually changed, who stands to benefit, and why our Director, Hannah Vandervennin, believes the announcement is more modest in practice than it first appears.
The update, announced in mid-May 2026, lifts NatWest’s income multiples across several borrower profiles:
For context, this brings NatWest broadly into line with the most generous high-LTI lending in the market. HSBC introduced a comparable 6.5 times option, though at a lower £100,000 earnings threshold, while a handful of specialist lenders such as Teachers Building Society and April Mortgages will stretch to seven times income for eligible borrowers. Lenders have been able to extend these higher multiples as regulatory pressure to restrain larger loans has eased.
Every one of NatWest’s enhanced income multiples is conditional on the loan being at 75% LTV or below. In plain terms, that means a borrower needs a deposit of at least 25% of the property’s value to access the higher borrowing. The income multiple may have moved, but the deposit requirement has not.
That is a significant qualifier. The borrowers most likely to be constrained by income multiples in the first place, those trying to stretch to a larger or more expensive home, are frequently the same borrowers who do not have a quarter of the purchase price sitting in cash. A higher multiple is only useful if you can clear the deposit hurdle that unlocks it.
“The headline is the income multiple, but the real constraint is the 75% LTV cap, which still requires a 25% deposit. Pushing income multiples upward without loosening the LTV ceiling is moving one lever while the other stays bolted down.”
“A higher LTV cap alongside the new income multiple would have unlocked considerably more transactions. As it stands, this is a competitive move for a narrow cohort, not a market mover.”
Hannah Vandervennin · Director, The Mortgage Consultancy
The change is genuinely valuable for a specific group: higher earners who already hold substantial equity or a large deposit, and who want to maximise their borrowing on a single move. A professional couple earning £150,000 between them, with 25% to put down, can now borrow meaningfully more against the same income than they could a few weeks ago. For that cohort, NatWest may well be the most competitive option on the high street.
For first-time buyers and those buying with smaller deposits, however, the practical impact is limited. The headline multiple does not apply at 90% or 95% LTV, so the announcement does little to address the affordability pressure felt by buyers who are stretched on deposit rather than income.
The wider point is that no single lender’s criteria tells the whole story. Income multiples, LTV caps, stress tests, and the treatment of bonuses, self-employed income and other earnings all vary considerably from lender to lender. A change that grabs headlines at one bank may be matched, or beaten, elsewhere for your particular circumstances, and the most generous multiple on paper is not always the right deal once rates, fees and criteria are taken into account.
This is precisely where whole-of-market advice earns its place. The right question is rarely “how much will NatWest lend me?” but “which lender’s combination of borrowing limit, rate and criteria best fits my income, my deposit and my plans?”
Thinking about your borrowing capacity? Lending criteria are changing frequently this year. If you want to understand what you could realistically borrow across the whole market, and which lenders suit your deposit and income, speak to one of our advisers. There is no obligation and no upfront fee.
The Mortgage Consultancy is authorised and regulated by the Financial Conduct Authority and operates on a whole-of-market basis. We help clients across London, Kent and the wider UK navigate lender criteria and find the most suitable mortgage for their circumstances.
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