Banks bring in fresh mortgage rules

NEW interest-only mortgages taken out by Royal Bank of Scotland (RBS) and NatWest customers will be restricted to people earning at least £50,000 under new rules.

The new requirements will help deal with market volatility and are part of RBS and its sister brand NatWest showing “responsible” lending by ensuring the mortgage is affordable to the consumer, the Royal Bank of Scotland group said.

The announcement follows general concerns of an interest-only mortgage “ticking time bomb” across the housing market.