The changes have been implemented from today but do not include criteria for customers on furlough who have yet to receive a return to work date.

At present, NatWest will only consider guaranteed income such as basic pay and shift allowances for applicants who have returned from furlough within the last three months.

Evidence including latest payslips and confirmation letters from employers will be required for this, as it will also be for PAYE contract income.

Other regular income such as overtime and commission, monthly and annual bonuses will not be considered for newly returned borrowers. Zero hours contracts are also excluded.

Customers who have returned from furlough for more than three months will be able to use all standard income assessments excluding annual bonuses.

“Due to the impending withdrawal of the UK government’s employed furlough scheme at the end of October, we have reviewed and updated our policy to support customers when applying for a mortgage with us,” the lender said.

“We will continue to review our policy in light of any coronavirus related changes. For customers not impacted by furlough, there are no changes to our current policies.

“The updated guidance is effective from 27 August and covers the types of evidence required to support new applications at each stage of the customers return to work post-furlough,” it added.

NatWest follows a number of lenders which have tightened borrowing criteria for furloughed workers. Nationwide Building Society will only accept income from furloughed workers who have returned to work or will be returning to work by 2 November.

In July, HSBC confirmed it would no longer accept furlough employees who have no return to work date or where the return is more than three months away.

And TSB stopped accepting income from furloughed borrowers whose salary is not being topped up by their employer.