Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

NatWest stops lending to borrowers receiving SEISS

NatWest

The lender is also tightening its residential affordability assessment

NatWest has pulled the plug on mortgages to self-employed borrowers who receive the SEISS grant, as the lender also changes affordability, criteria and rates across a number of ranges, including buy to let and interest-only.

Since 14 July anyone applying for the government help has had to confirm their business has been impacted by Covid-19.

As such, the bank is now declining income that has come from a business in receipt of the grant over the last four months.

The bank said: At this time our primary purpose remains to ensure that any mortgage we provide to customers is affordable.

NatWest is also tightening its residential affordability assessment.

In a message to advisers the lender said it was making a change to background affordability calculations “to ensure we continue to lend responsibly when assessing customers current and future mortgage eligibility”.

The lender stated: As a result of the affordability changes, there may be a reduction in the maximum lend compared to previous affordability assessments.

The changes come after the lender last week toughened buy-to-let affordability calculations, while changing its interest-only mortgages.

The lender has changing acceptable income types for interest-only mortgages to directly match capital and interest criteria including accepting bonus income when assessing affordability.

At the same time a new minimum combined income of £100,000 per year for joint interest-only applications, while for sole applicants the minimum qualifying income will remain at £75,000 per year.

NatWest said that the aim is that the changes will help more customers secure an interest-only mortgage.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.