NatWest has announced an expansion of its loan-to-income (LTI) ratio<\/strong>, allowing eligible borrowers to access larger loans. This move is expected to benefit higher earners, particularly those with single or joint incomes above \u00a340,000<\/strong>. The changes aim to increase borrowing capacity<\/strong>, making it easier for certain customers to secure financing.<\/p>\n\n\n\n
NatWest\u2019s decision<\/strong> follows similar changes from other lenders, including Marsden Building Society, Loughborough Building Society, and TSB. The financial sector has seen increasing pressure to expand lending options, particularly as affordability remains a challenge for many consumers.<\/p>\n\n\n\n
Nationwide recently urged the government to review lending caps<\/strong>, arguing that restrictive LTI limits make it difficult for many customers to secure financing. While easing borrowing limits could improve access to funding, financial regulators remain cautious about the potential risks of higher debt levels.<\/p>\n\n\n\n
Some experts have raised concerns that increasing LTI ratios may lead to a rise in financial strain and loan defaults<\/strong>. The Bank of England <\/a>has highlighted the need for a public debate on the trade-off between expanding lending access and the risk of increased financial instability.<\/p>\n\n\n\n