Banks change mortgage rules to target the wealthy

Britain’s biggest lenders are changing mortgage rules to target wealthier borrowers amid an affordability squeeze brought on by surging inflation. Halifax has upped its minimum loan size from £25,000 to £100,000 on some of its two and five-year remortgage deals. Experts said many lenders were competing to attract wealthier homeowners as the cost of living crisis leaves less affluent households struggling to pay their bills. It comes as NatWest relaxed its lending limits for wealthier borrowers. It will now offer those who earn more than £75,000 per year a mortgage of up to five-and-a-half times their annual income. The new rules apply to mortgages sold using a broker and joint applicants must have a combined income of at least £100,000 a year. Earlier this month Nationwide building society increased its maximum loan size from £2m to £5m. Experts said this was also to target weather borrowers. 

The Daily Telegraph (20/08/2022)