NatWest's fourth LTI uplift of 2026
NatWest has raised its maximum loan-to-income (LTI) ratio to 6.5x for joint borrowers with a combined income exceeding £150,000. This is the fourth LTI uplift the lender has made in 2026 alone, reflecting intensifying competition among high-street lenders for high-income borrowers.
The 6.5x multiple is subject to a 75% LTV cap — meaning borrowers accessing the maximum multiple will need at least a 25% deposit. Within those parameters, the impact is substantial: a couple on a combined income of £150,000 can now borrow up to £975,000, compared with £750,000 at the previous 5x maximum. That is a £225,000 increase in borrowing capacity on the same income.
The income assessment challenge for contractors
The headline figure is compelling. The catch, for contractors, is in how income is assessed. NatWest and most high-street lenders default to salary-based income assessment. A limited company contractor who pays themselves a modest salary and dividends — the most tax-efficient structure — will see their income significantly understated under standard assessment.
Day rate contractors are in a similar position. A contractor billing £600 per day annualises to approximately £144,000 at 240 working days. Under salary-based assessment, they may be assessed on a fraction of that figure. The £150,000 threshold for the 6.5x uplift could appear out of reach on paper even when it is comfortably within reach on contract value.
Specialist lenders and a growing number of mainstream lenders — including NatWest under the right circumstances — will assess contractors on their annualised day rate or contract value rather than salary. Getting the right lender and the right income presentation is the entire game.
The opportunity for contractor pairs
This move is particularly significant for dual-contractor households — two IT contractors, two consultants, two engineers — who have historically struggled to reach larger loan sizes because each income was individually modest on paper.
Two contractors each billing £400 per day have a combined annualised income of around £192,000 at 240 days. At 6.5x, that supports borrowing of up to £1.248 million — subject to deposit and LTV criteria. Previously, at 5x, the same income supported £960,000. The additional £288,000 in borrowing capacity opens a materially different tier of property in most UK markets.
The critical step is ensuring both incomes are presented to the lender in the correct format. A broker who understands contractor underwriting can structure the application to make both contract values legible to the lender's criteria — rather than triggering a default salary-only assessment that would understate the position.
Part of a broader lender trend
NatWest's move is not isolated. Lenders across the market have been competing aggressively for high-income borrowers in 2026, using LTI uplifts as a key lever. This creates genuine opportunity for contractors who are earning well but have previously been held back by income presentation rather than actual earnings power.
The combination of rising LTI caps and growing lender willingness to accept day-rate income assessment means 2026 may represent the most favourable underwriting environment for high-earning contractors in several years. Acting on this window requires both the right lender and an adviser who knows how to present your income correctly.
Find out how much you could borrow as a contractor — speak to a Day Rate Finance specialist today. We assess your income on your day rate and match you to lenders who will do the same. Book a free call to get started.
Related reading
How day rate income is assessed and which lenders will consider your contract value.
Why 35,144 mortgages fell through in Q1 — and how to avoid being one of them.
What Halifax's rate reductions mean for contractor borrowers and when to act.
Category: Lender Rate Cuts & Product Updates