Belfast Telegraph

Now RBS set to limit mortgage borrowing

By Vicky Shaw

Another major lender is to clamp down on high-value mortgage borrowing amid concerns that the London market is overheating.

Ulster Bank parent, Royal Bank of Scotland (RBS), has confirmed it will ban home loans of more than £500,000 unless the mortgage is no more than four times the income of those applying for it.

The changes will be introduced at some point later this month, and will affect people applying for mortgages with RBS and its sister bank NatWest.

It's unlikely to have any impact on mortgage borrowing for Ulster Bank customers in Northern Ireland.

It also means that applicants will be able to borrow money for a maximum of 30 years, so applicants cannot just take out larger mortgages by spreading their payments for longer.

The move follows an announcement by Lloyds Banking Group, in which it said people applying to take out a mortgage worth more than £500,000 will see the amount they can borrow limited to four times their income.

Belfast Telegraph