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.
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