RBS and NatWest Change Interest-only Mortgage Lending Rules
Following the example of Santander, Halifax and Nationwide, Royal Bank of Scotland and Natwest said that they are changing interest-only mortgage rules.
The banks will only be lending to those customers who are earning 50,000 pounds and more a year. This includes gross basic salary only, not including bonus or regular overtime. “With joint applications, the main applicant must earn at least £50,000. It is not enough for both applicants to be earning at least this amount combined.”
The banks said the move describes their commitment to responsible lending as it aims to ensure that borrowers have enough money to remortgage or pay the mortgage rates. Royal Bank of Scotland also highlighted that the change in interest-only mortgage rules is in line with the policies of the bank's competitors.
Both, Natwest and RBS said that the change will only affect residential mortgage borrowers, meaning that commercial mortgages will be offered on the same terms as before.
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