Latest News

Here’s a full list the changes with product codes in brackets:

 

New Business

 

Core Range

 

Residential

Rate Changes

2 year fixed rate purchase

[FO25624] 60% LTV, decreasing by 7bps from 1.25% to 1.18%, product fee £995

[FO25625] 80% LTV, decreasing by 5bps from 2.03% to 1.98%, product fee £995

[FO25627] 85% LTV, decreasing by 10bps from 2.93% to 2.83%, product fee £0

[FO25626] 85% LTV, decreasing by 9bps from 2.63% to 2.54%, product fee £995

[FO25629] 90% LTV, decreasing by 5bps from 3.48% to 3.43%, product fee £0

[FO25628] 90% LTV, decreasing by 5bps from 3.24% to 3.19%, product fee £995

 

2 year fixed rate remortgage - high value

[FO25665] 60% LTV, decreasing by 3bps from 1.17% to 1.14%, product fee £995

 

2 year fixed rate remortgage

[FO25635] 60% LTV, decreasing by 3bps from 1.18% to 1.15%, product fee £995

[FO25637] 70% LTV, decreasing by 11bps from 1.89% to 1.78%, product fee £0

[FO25636] 70% LTV, decreasing by 1bps from 1.44% to 1.43%, product fee £995

 

2 year fixed rate remortgage - high value

[FO25666] 70% LTV, decreasing by 1bps from 1.43% to 1.42%, product fee £995

 

2 year fixed rate remortgage

[FO25638] 75% LTV, decreasing by 1bps from 1.44% to 1.43%, product fee £995

[FO25639] 75% LTV, decreasing by 11bps from 1.89% to 1.78%, product fee £0

 

2 year fixed rate remortgage - high value

[FO25667] 75% LTV, decreasing by 1bps from 1.43% to 1.42%, product fee £995

 

2 year fixed rate remortgage

[FO25641] 80% LTV, decreasing by 2bps from 2.00% to 1.98%, product fee £995

[FO25642] 85% LTV, decreasing by 10bps from 2.64% to 2.54%, product fee £995

[FO25643] 85% LTV, decreasing by 11bps from 2.94% to 2.83%, product fee £0

[FO25645] 90% LTV, decreasing by 15bps from 3.39% to 3.24%, product fee £995

[FO25647] 90% LTV, decreasing by 15bps from 3.59% to 3.44%, product fee £0

 

5 year fixed rate purchase

[FO25630] 60% LTV, decreasing by 5bps from 1.33% to 1.28%, product fee £995

[FO25631] 80% LTV, decreasing by 5bps from 2.23% to 2.18%, product fee £995

[FO25633] 85% LTV, decreasing by 8bps from 3.15% to 3.07%, product fee £0

[FO25632] 85% LTV, decreasing by 7bps from 2.90% to 2.83%, product fee £995

[FO25634] 90% LTV, decreasing by 3bps from 3.63% to 3.60%, product fee £0

 

5 year fixed rate remortgage - high value

[FO25668] 60% LTV, decreasing by 3bps from 1.31% to 1.28%, product fee £995

 

5 year fixed rate remortgage

[FO25649] 60% LTV, decreasing by 3bps from 1.32% to 1.29%, product fee £995

[FO25651] 70% LTV, decreasing by 2bps from 1.63% to 1.61%, product fee £995

[FO25653] 70% LTV, decreasing by 9bps from 1.98% to 1.89%, product fee £0

 

5 year fixed rate remortgage - high value

[FO25670] 70% LTV, decreasing by 2bps from 1.62% to 1.60%, product fee £995

 

5 year fixed rate remortgage

[FO25654] 75% LTV, decreasing by 2bps from 1.63% to 1.61%, product fee £995

[FO25655] 75% LTV, decreasing by 9bps from 1.98% to 1.89%, product fee £0

 

5 year fixed rate remortgage - high value

[FO25671] 75% LTV, decreasing by 2bps from 1.62% to 1.60%, product fee £995

 

5 year fixed rate remortgage

[FO25656] 90% LTV, decreasing by 10bps from 3.54% to 3.44%, product fee £995

 

 

Green Mortgages

Residential

 

Rate Changes

2 year fixed rate purchase

[FO25658] 60% LTV, decreasing by 4bps from 1.22% to 1.18%, product fee £995, cashback £250

[FO25660] 85% LTV, decreasing by 9bps from 2.63% to 2.54%, product fee £995, cashback £250

 

5 year fixed rate purchase

[FO25661] 60% LTV, decreasing by 5bps from 1.33% to 1.28%, product fee £995, cashback £250

[FO25662] 85% LTV, decreasing by 7bps from 2.90% to 2.83%, product fee £995, cashback £250

 

 

Existing Customer

 

Core Range

 

Residential

Rate Changes

2 year fixed rate switcher

[FO25675] 60% LTV, decreasing by 7bps from 1.61% to 1.54%, product fee £0

[FO25673] 60% LTV, decreasing by 3bps from 1.23% to 1.20%, product fee £995

[FO25676] 70% LTV, decreasing by 5bps from 1.49% to 1.44%, product fee £995

[FO25677] 70% LTV, decreasing by 20bps from 1.99% to 1.79%, product fee £0

[FO25679] 75% LTV, decreasing by 20bps from 1.99% to 1.79%, product fee £0

[FO25678] 75% LTV, decreasing by 5bps from 1.49% to 1.44%, product fee £995

[FO25680] 80% LTV, decreasing by 5bps from 2.09% to 2.04%, product fee £995

[FO25688] 85% LTV, decreasing by 11bps from 3.04% to 2.93%, product fee £0

[FO25681] 85% LTV, decreasing by 10bps from 2.69% to 2.59%, product fee £995

 

5 year fixed rate switcher

[FO25691] 60% LTV, decreasing by 3bps from 1.37% to 1.34%, product fee £995

[FO25694] 70% LTV, decreasing by 2bps from 1.65% to 1.63%, product fee £995

[FO25695] 70% LTV, decreasing by 9bps from 2.09% to 2.00%, product fee £0

[FO25696] 75% LTV, decreasing by 2bps from 1.65% to 1.63%, product fee £995

[FO25697] 75% LTV, decreasing by 9bps from 2.09% to 2.00%, product fee £0

[FO25698] 80% LTV, decreasing by 1bps from 2.24% to 2.23%, product fee £995

[FO25699] 85% LTV, decreasing by 11bps from 2.95% to 2.84%, product fee £995

 

 

 

End dates

 

There are no changes to end dates

Transitional arrangements

You’ll be able to produce Mortgage Illustrations and submit applications online for existing deals up to 10:30pm Monday 1 March, 2021.

If you are unable to submit an application online due to a technical issue that cannot be resolved over the phone, then you must submit a paper-based application. In this instance, you must e-mail your BDM by midday on Tuesday 2 March 2021. Requests received after this time will not be considered.

Your email must include in bullet points:

• Your details - name, company and postcode
• Customer name
• Product applying for
• Amount of mortgage loan
• Reason for paper application - If you have experienced a technical issue a clear description of the problem encountered with error code (if applicable) must be provided
• State whether you were trying to submit via NatWest Intermediary Solutions’ website or the Mortgage Trading Exchange

Paper applications must be signed by all applicants and the original received at the following address by close of business on Thursday 4 March 2021 for your rate to be honoured:

 

 

FREEPOST NatWest Intermediary Solutions

Mortgage Centre

Cartsdyke Avenue

Greenock

PA15 1ED

What’s happening

 

We are delighted to announce that we are implementing a number LTV changes to continue to support you and your customers.

 

What you need to know

 

From the 16^th February, we are re-introducing a number of our higher LTV products:

·         Residential New Build max LTV will increase to 85%

·         4 new 90% LTV Residential Remortgage Products. For customers looking to remortgages on a like for like basis only (Additional borrowing remains at 80%)

·         TOFTs will be increased back to 90% and 95% on a like for like basis

The previous guidance related to payment holidays applies.  We are happy to accept applications where a customer is able to evidence that the first full scheduled monthly payment has been made having finished their payment holiday. 

These changes are effective from 16 February for all new qualifying mortgage applications received.

 

Alongside the re-introduction of high LTV products, we are also implementing a number of rate reductions for new business customers:

·         Purchase: Rate reductions of up to 13bps and 23bps on selected 2 and 5 year deals respectively.

·         Green Mortgages Rate reduction of 12bps and 5bps on 75% LTV 2 and 5 year deals respectively.

Here’s a full list the changes with product codes in brackets:

 

New Business

 

Core Range

Residential

Rate Changes

2 year fixed rate purchase

[FO25613] 70% LTV, decreasing by 13bps from 1.57% to 1.44%, product fee £995

[FO25614] 75% LTV, decreasing by 13bps from 1.57% to 1.44%, product fee £995

 

5 year fixed rate purchase

[FO25615] 60% LTV, decreasing by 1bps from 1.34% to 1.33%, product fee £995

[FO25616] 70% LTV, decreasing by 23bps from 1.86% to 1.63%, product fee £995

[FO25617] 75% LTV, decreasing by 23bps from 1.86% to 1.63%, product fee £995

 

New Products

2 year fixed rate remortgage

[FO25619] 90% LTV, 3.59%, product fee £0

[FO25618] 90% LTV, 3.39%, product fee £995

 

5 year fixed rate remortgage

[FO25621] 90% LTV, 3.74%, product fee £0

[FO25620] 90% LTV, 3.54%, product fee £995

 

 

Green Mortgages

Residential

Rate Changes

2 year fixed rate purchase

[FO25622] 75% LTV, decreasing by 12bps from 1.56% to 1.44%, product fee £995, cashback £250

 

5 year fixed rate purchase

[FO25623] 75% LTV, decreasing by 5bps from 1.68% to 1.63%, product fee £995, cashback £250

 

 

Existing Customer

No Changes

 

 

End dates

 

There are no changes to end dates

 

Transitional arrangements

You’ll be able to produce Mortgage Illustrations and submit applications online for existing deals up to 10:30pm Monday 15 February, 2021.

If you are unable to submit an application online due to a technical issue that cannot be resolved over the phone, then you must submit a paper-based application. In this instance, you must e-mail your BDM by midday on Tuesday 16 February 2021. Requests received after this time will not be considered.

Your email must include in bullet points:

• Your details - name, company and postcode
• Customer name
• Product applying for
• Amount of mortgage loan
• Reason for paper application - If you have experienced a technical issue a clear description of the problem encountered with error code (if applicable) must be provided
• State whether you were trying to submit via NatWest Intermediary Solutions’ website or the Mortgage Trading Exchange

Paper applications must be signed by all applicants and the original received at the following address by close of business on Thursday 18 February 2021 for your rate to be honoured:

 

 

FREEPOST NatWest Intermediary Solutions

Mortgage Centre

Cartsdyke Avenue

Greenock

PA15 1ED

Here’s a full list the changes with product codes in brackets:

 

New Business

 

Core Range

Residential

 

Rate Changes

2 year fixed rate purchase

[FO25527] 80% LTV, decreasing by 5bps from 2.53% to 2.48%, product fee £0

[FO25528] 85% LTV, decreasing by 17bps from 2.80% to 2.63%, product fee £995

[FO25529] 85% LTV, decreasing by 16bps from 3.09% to 2.93%, product fee £0

[FO25530] 90% LTV, decreasing by 20bps from 3.44% to 3.24%, product fee £995

[FO25531] 90% LTV, decreasing by 21bps from 3.69% to 3.48%, product fee £0

 

2 year fixed rate remortgage

[FO25539] 60% LTV, decreasing by 11bps from 1.64% to 1.53%, product fee £0

 

2 year fixed rate remortgage - high value

[FO25555] 60% LTV, decreasing by 2bps from 1.19% to 1.17%, product fee £995

 

2 year fixed rate remortgage

[FO25538] 60% LTV, decreasing by 3bps from 1.21% to 1.18%, product fee £995

[FO25540] 80% LTV, decreasing by 4bps from 2.04% to 2.00%, product fee £995

[FO25541] 80% LTV, decreasing by 4bps from 2.52% to 2.48%, product fee £0

[FO25542] 85% LTV, decreasing by 14bps from 3.08% to 2.94%, product fee £0

 

5 year fixed rate purchase

[FO25532] 80% LTV, decreasing by 6bps from 2.29% to 2.23%, product fee £995

[FO25533] 80% LTV, decreasing by 15bps from 2.73% to 2.58%, product fee £0

[FO25535] 85% LTV, decreasing by 16bps from 3.31% to 3.15%, product fee £0

[FO25534] 85% LTV, decreasing by 4bps from 2.94% to 2.90%, product fee £995

[FO25537] 90% LTV, decreasing by 9bps from 3.72% to 3.63%, product fee £0

[FO25536] 90% LTV, decreasing by 6bps from 3.49% to 3.43%, product fee £995

 

5 year fixed rate remortgage

[FO25544] 60% LTV, decreasing by 13bps from 1.74% to 1.61%, product fee £0

[FO25543] 60% LTV, decreasing by 2bps from 1.34% to 1.32%, product fee £995

 

5 year fixed rate remortgage - high value

[FO25556] 60% LTV, decreasing by 2bps from 1.33% to 1.31%, product fee £995

 

5 year fixed rate remortgage

[FO25545] 70% LTV, decreasing by 2bps from 1.65% to 1.63%, product fee £995

 

5 year fixed rate remortgage - high value

[FO25557] 70% LTV, decreasing by 2bps from 1.64% to 1.62%, product fee £995

 

5 year fixed rate remortgage

[FO25546] 70% LTV, decreasing by 13bps from 2.11% to 1.98%, product fee £0

[FO25548] 75% LTV, decreasing by 13bps from 2.11% to 1.98%, product fee £0

[FO25547] 75% LTV, decreasing by 2bps from 1.65% to 1.63%, product fee £995

 

5 year fixed rate remortgage - high value

[FO25558] 75% LTV, decreasing by 2bps from 1.64% to 1.62%, product fee £995

 

5 year fixed rate remortgage

[FO25549] 80% LTV, decreasing by 15bps from 2.69% to 2.54%, product fee £0

[FO25550] 85% LTV, decreasing by 3bps from 2.73% to 2.70%, product fee £995

 

 

First Time Buyer

Residential

Rate Changes

2 year fixed rate purchase

[FO25551] 80% LTV, decreasing by 5bps from 2.53% to 2.48%, product fee £0, cashback £250

 

5 year fixed rate purchase

[FO25552] 80% LTV, decreasing by 15bps from 2.73% to 2.58%, product fee £0, cashback £250

 

 

Green Mortgages

Residential

Rate Changes

2 year fixed rate purchase

[FO25553] 85% LTV, decreasing by 16bps from 2.79% to 2.63%, product fee £995, cashback £250

 

5 year fixed rate purchase

[FO25554] 85% LTV, decreasing by 3bps from 2.93% to 2.90%, product fee £995, cashback £250

 

 

Existing Customer

 

Core Range

Residential

Rate Changes

2 year fixed rate switcher

[FO25559] 60% LTV, decreasing by 3bps from 1.26% to 1.23%, product fee £995

[FO25560] 60% LTV, decreasing by 7bps from 1.68% to 1.61%, product fee £0

[FO25561] 85% LTV, decreasing by 9bps from 3.13% to 3.04%, product fee £0

 

5 year fixed rate switcher

[FO25562] 60% LTV, decreasing by 2bps from 1.39% to 1.37%, product fee £995

[FO25563] 60% LTV, decreasing by 5bps from 1.74% to 1.69%, product fee £0

[FO25564] 70% LTV, decreasing by 2bps from 2.11% to 2.09%, product fee £0

[FO25565] 75% LTV, decreasing by 2bps from 2.11% to 2.09%, product fee £0

 

 

 

End dates

 

There are no changes to end dates

Transitional arrangements

 

You’ll be able to produce Mortgage Illustrations and submit applications online for existing deals up to 10:30pm Thursday 4 February, 2021.

 

If you are unable to submit an application online due to a technical issue that cannot be resolved over the phone, then you must submit a paper-based application. In this instance, you must e-mail your BDM by midday on Friday 5 February 2021. Requests received after this time will not be considered.

 

Your email must include in bullet points:

 

• Your details - name, company and postcode
• Customer name
• Product applying for
• Amount of mortgage loan
• Reason for paper application - If you have experienced a technical issue a clear description of the problem encountered with error code (if applicable) must be provided
• State whether you were trying to submit via NatWest Intermediary Solutions’ website or the Mortgage Trading Exchange

 

Paper applications must be signed by all applicants and the original received at the following address by close of business on Tuesday 9 February 2021 for your rate to be honoured:

 

 

FREEPOST NatWest Intermediary Solutions

Mortgage Centre

Cartsdyke Avenue

Greenock

PA15 1ED

The 24 winning and highly commended broker firms in the NatWest Local Hero Mortgage Awards have been announced.

 

NatWest is using the awards to recognise broker firms that have gone beyond everyday expectations to put the customer and their local community at the heart of their business. These achievements have only been magnified by the impact of the pandemic.

Across the 12 regional categories, firms were asked to demonstrate their position as a local mortgage and protection expert, their commitment to quality advice, excellent customer outcomes, and their positive contributions to the local community.

The judging process also urged firms to show a clear focus on a more sustainable approach to reducing the social and environmental impact of their business practices and how they encourage others to take a more sustainable approach to environmental issues.

 

NatWest head of intermediary mortgages Graham Felstead said the lender was delighted to recognise its Local Heroes again.

He added that while it was disappointing this acknowledgement could not be done in person, it did not detract from the hard work, commitment and community focus of all the firms who participated.

“The awards are specifically aimed at recognising the hard work and commitment of mortgage adviser firms that have gone above and beyond normal expectations,” he said.

“These firms have exemplified putting the customer and their local community at the heart of everything they do, in addition to providing sound financial advice for those consumers within their locality.

“We can see again that there are many firms doing exceptional things in their communities.”

 

Best Firm, East of England

Winner: CLS Money
Highly Commended: Premier Financial Group

 

Best Firm, Greater London

Winner: Alexander Hall Associates
Highly Commended: BTJ Mortgages

Best Firm, South East England

Winner: Crystal Clear Financial Services
Highly Commended: Forces Family Finance 

 

Best Firm, North East England

Winner: First Mortgage NE
Highly Commended: Mapps Mortgage & Insurance

Best Firm, Yorkshire & East Midlands

Winner: Fulcrum Financial

Highly Commended: Believe Finance

Best Firm, Scotland 

Winner: ESPC Mortgages
Highly Commended: Argyll Financial Services

Best Firm, South West England

Winner: TFA Trusted Financial Advice
Highly Commended: Ecclesiastical Financial Advisory Services

Best Firm, South Central England

Winner: The Money Guardian
Highly Commended: Threshold Financial Services

 

Best Firm, Wales

Winner: Westmore Insure
Highly Commended: Clearwater Financial Solutions

 

Best Firm, North West England

Winner: Bluetree Financial Services
Highly Commended: Rapport Financial Strategists

 

Best Firm, West Midlands 

Winner: S J Financial Solutions

Highly Commended: JAM Advisors

 

Best Firm, Central England 

Winner: RTA Mortgage & Financial Services

Highly Commended: JLM Mortgage Services

Effective from Tuesday 19 January 2021

 

Here’s a full list the changes with product codes in brackets:

 

New Business

Core Range

 

Residential

Rate Changes

2 year fixed rate purchase

[FO25216] 60% LTV, decreasing by 62bps from 2.40% to 1.78%, product fee £0

[FO25222] 70% LTV, decreasing by 27bps from 2.45% to 2.18%, product fee £0

[FO25224] 75% LTV, decreasing by 27bps from 2.45% to 2.18%, product fee £0

[FO25226] 80% LTV, decreasing by 41bps from 2.94% to 2.53%, product fee £0

[FO25225] 80% LTV, decreasing by 6bps from 2.09% to 2.03%, product fee £995

[FO25230] 85% LTV, decreasing by 15bps from 3.24% to 3.09%, product fee £0

[FO25228] 85% LTV, decreasing by 10bps from 2.90% to 2.80%, product fee £995

[FO25485] 90% LTV, decreasing by 11bps from 3.55% to 3.44%, product fee £995

[FO25450] 90% LTV, decreasing by 6bps from 3.75% to 3.69%, product fee £0

 

2 year fixed rate remortgage

[FO25249] 60% LTV, decreasing by 105bps from 2.69% to 1.64%, product fee £0

[FO25248] 60% LTV, decreasing by 4bps from 1.25% to 1.21%, product fee £995

[FO25251] 70% LTV, decreasing by 90bps from 2.79% to 1.89%, product fee £0

[FO25250] 70% LTV, decreasing by 5bps from 1.49% to 1.44%, product fee £995

 

2 year fixed rate remortgage - high value

[FO25333] 70% LTV, decreasing by 1bps from 1.44% to 1.43%, product fee £995

 

2 year fixed rate remortgage

[FO25252] 75% LTV, decreasing by 5bps from 1.49% to 1.44%, product fee £995

 

2 year fixed rate remortgage - high value

[FO25334] 75% LTV, decreasing by 1bps from 1.44% to 1.43%, product fee £995

 

2 year fixed rate remortgage

[FO25254] 75% LTV, decreasing by 90bps from 2.79% to 1.89%, product fee £0

[FO25255] 80% LTV, decreasing by 37bps from 2.89% to 2.52%, product fee £0

[FO25256] 85% LTV, decreasing by 16bps from 3.24% to 3.08%, product fee £0

 

5 year fixed rate purchase

[FO25235] 60% LTV, decreasing by 116bps from 3.09% to 1.93%, product fee £0

[FO25232] 60% LTV, decreasing by 5bps from 1.39% to 1.34%, product fee £995

[FO25239] 70% LTV, decreasing by 101bps from 3.20% to 2.19%, product fee £0

[FO25243] 75% LTV, decreasing by 102bps from 3.21% to 2.19%, product fee £0

[FO25245] 80% LTV, decreasing by 65bps from 3.38% to 2.73%, product fee £0

[FO25246] 85% LTV, decreasing by 15bps from 3.09% to 2.94%, product fee £995

[FO25247] 85% LTV, decreasing by 8bps from 3.39% to 3.31%, product fee £0

[FO25451] 90% LTV, decreasing by 11bps from 3.60% to 3.49%, product fee £995

[FO25452] 90% LTV, decreasing by 8bps from 3.80% to 3.72%, product fee £0

 

5 year fixed rate remortgage

[FO25257] 60% LTV, decreasing by 5bps from 1.39% to 1.34%, product fee £995

[FO25258] 60% LTV, decreasing by 123bps from 2.97% to 1.74%, product fee £0

 

5 year fixed rate remortgage - high value

[FO25335] 60% LTV, decreasing by 1bps from 1.34% to 1.33%, product fee £995

 

5 year fixed rate remortgage

[FO25259] 70% LTV, decreasing by 4bps from 1.69% to 1.65%, product fee £995

 

5 year fixed rate remortgage - high value

[FO25336] 70% LTV, decreasing by 3bps from 1.67% to 1.64%, product fee £995

 

5 year fixed rate remortgage

[FO25261] 70% LTV, decreasing by 92bps from 3.03% to 2.11%, product fee £0

 

5 year fixed rate remortgage - high value

[FO25337] 75% LTV, decreasing by 3bps from 1.67% to 1.64%, product fee £995

 

5 year fixed rate remortgage

[FO25263] 75% LTV, decreasing by 4bps from 1.69% to 1.65%, product fee £995

[FO25265] 75% LTV, decreasing by 94bps from 3.05% to 2.11%, product fee £0

[FO25266] 80% LTV, decreasing by 5bps from 2.24% to 2.19%, product fee £995

[FO25268] 80% LTV, decreasing by 48bps from 3.17% to 2.69%, product fee £0

[FO25269] 85% LTV, decreasing by 6bps from 2.79% to 2.73%, product fee £995

 

First Time Buyer

Residential

Rate Changes

2 year fixed rate purchase

[FO25271] 80% LTV, decreasing by 11bps from 2.64% to 2.53%, product fee £0, cashback £250

 

5 year fixed rate purchase

[FO25273] 80% LTV, decreasing by 65bps from 3.38% to 2.73%, product fee £0, cashback £250

 

Shared Equity

Residential

Rate Changes

2 year fixed rate purchase

[FO25275] 60% LTV, decreasing by 5bps from 1.48% to 1.43%, product fee £995

[FO25277] 60% LTV, decreasing by 63bps from 2.68% to 2.05%, product fee £0

[FO25279] 70% LTV, decreasing by 48bps from 2.68% to 2.20%, product fee £0

[FO25281] 75% LTV, decreasing by 48bps from 2.68% to 2.20%, product fee £0

 

5 year fixed rate purchase

[FO25283] 60% LTV, decreasing by 7bps from 1.80% to 1.73%, product fee £995

[FO25284] 60% LTV, decreasing by 130bps from 3.39% to 2.09%, product fee £0

[FO25288] 70% LTV, decreasing by 111bps from 3.39% to 2.28%, product fee £0

[FO25286] 70% LTV, decreasing by 3bps from 2.11% to 2.08%, product fee £995

[FO25292] 75% LTV, decreasing by 121bps from 3.49% to 2.28%, product fee £0

[FO25290] 75% LTV, decreasing by 3bps from 2.11% to 2.08%, product fee £995

 

Help to Buy: shared equity

Residential

Rate Changes

2 year fixed rate purchase

[FO25296] 60% LTV, decreasing by 63bps from 2.68% to 2.05%, product fee £0

[FO25294] 60% LTV, decreasing by 5bps from 1.48% to 1.43%, product fee £995

[FO25297] 70% LTV, decreasing by 48bps from 2.68% to 2.20%, product fee £0

[FO25298] 75% LTV, decreasing by 48bps from 2.68% to 2.20%, product fee £0

 

2 year fixed rate remortgage

[FO25318] 60% LTV, decreasing by 135bps from 3.15% to 1.80%, product fee £0, cashback £500

[FO25317] 60% LTV, decreasing by 46bps from 1.91% to 1.45%, product fee £995, cashback £500

[FO25321] 70% LTV, decreasing by 113bps from 3.31% to 2.18%, product fee £0, cashback £500

[FO25319] 70% LTV, decreasing by 29bps from 1.99% to 1.70%, product fee £995, cashback £500

[FO25322] 75% LTV, decreasing by 38bps from 2.08% to 1.70%, product fee £995, cashback £500

[FO25323] 75% LTV, decreasing by 113bps from 3.31% to 2.18%, product fee £0, cashback £500

 

5 year fixed rate purchase

[FO25301] 60% LTV, decreasing by 130bps from 3.39% to 2.09%, product fee £0

[FO25300] 60% LTV, decreasing by 7bps from 1.80% to 1.73%, product fee £995

[FO25305] 70% LTV, decreasing by 111bps from 3.39% to 2.28%, product fee £0

[FO25303] 70% LTV, decreasing by 3bps from 2.11% to 2.08%, product fee £995

[FO25311] 75% LTV, decreasing by 121bps from 3.49% to 2.28%, product fee £0

[FO25306] 75% LTV, decreasing by 3bps from 2.11% to 2.08%, product fee £995

 

5 year fixed rate remortgage

[FO25324] 60% LTV, decreasing by 46bps from 2.04% to 1.58%, product fee £995, cashback £500

[FO25325] 60% LTV, decreasing by 256bps from 4.44% to 1.88%, product fee £0, cashback £500

[FO25326] 70% LTV, decreasing by 45bps from 2.25% to 1.80%, product fee £995, cashback £500

[FO25327] 70% LTV, decreasing by 221bps from 4.44% to 2.23%, product fee £0, cashback £500

[FO25328] 75% LTV, decreasing by 45bps from 2.25% to 1.80%, product fee £995, cashback £500

[FO25329] 75% LTV, decreasing by 240bps from 4.63% to 2.23%, product fee £0, cashback £500

 

Green Mortgages

Residential

Rate Changes

2 year fixed rate purchase

[FO25484] 85% LTV, decreasing by 3bps from 2.82% to 2.79%, product fee £995, cashback £250

 

5 year fixed rate purchase

[FO25330] 60% LTV, decreasing by 4bps from 1.37% to 1.33%, product fee £995, cashback £250

[FO25332] 85% LTV, decreasing by 2bps from 2.95% to 2.93%, product fee £995, cashback £250

 

Existing Customer

 

Core Range

Residential

Rate Changes

2 year fixed rate switcher

[FO25338] 60% LTV, decreasing by 12bps from 1.80% to 1.68%, product fee £0

 

5 year fixed rate switcher

[FO25339] 60% LTV, decreasing by 2bps from 1.41% to 1.39%, product fee £995

[FO25340] 60% LTV, decreasing by 15bps from 1.89% to 1.74%, product fee £0

[FO25341] 70% LTV, decreasing by 4bps from 1.69% to 1.65%, product fee £995

[FO25342] 75% LTV, decreasing by 7bps from 1.72% to 1.65%, product fee £995

 

 

End dates

 

2 Year Term End Dates Moving from 31 March 2023 to 30 June 2023

5 Year Term End Dates Moving from 31 March 2026 to 30 June 2026

 

Transitional arrangements

You’ll be able to produce Mortgage Illustrations and submit applications online for existing deals up to 10:30pm Monday 18 January, 2021.

If you are unable to submit an application online due to a technical issue that cannot be resolved over the phone, then you must submit a paper-based application. In this instance, you must e-mail your BDM by midday on Tuesday 19 January 2021. Requests received after this time will not be considered.

Your email must include in bullet points:

• Your details - name, company and postcode
• Customer name
• Product applying for
• Amount of mortgage loan
• Reason for paper application - If you have experienced a technical issue a clear description of the problem encountered with error code (if applicable) must be provided
• State whether you were trying to submit via NatWest Intermediary Solutions’ website or the Mortgage Trading Exchange

Paper applications must be signed by all applicants and the original received at the following address by close of business on Thursday 21 January 2021 for your rate to be honoured:

 

 

FREEPOST NatWest Intermediary Solutions

Mortgage Centre

Cartsdyke Avenue

Greenock

PA15 1ED

We are making changes to our existing porting process. These changes include reverting the porting refund window to a period of 4 months, as reflected in our Mortgage Illustrations. 

 

What you need to know

 

Several policy rules relating to porting will be clearly shown on our “Lending Criteria” page.

These include:

·         Applications fully submitted prior to 31^st January will have a 6 month porting window, as per the current Covid-19 linked extension

·         Applications submitted on or after 1^st February will have a 4 month porting window, as per the customer’s mortgage illustration

As a reminder we do not consider porting applications where the customer’s existing mortgage has already been redeemed on/before the date that they apply for the new mortgage OR they already own/co-own the property they are seeking a new application on.

 

What you need to do

 

Please familiarise yourself with our updated porting criteria which can be found on our A-Z of criteria page.

What is the definition of Settled and Pre-Settled status?

 

‘Settled’ status is if the customer has lived in the UK for >5 years and can stay in the UK for as long as they like​. This is equivalent to Indefinite leave to remain.

‘Pre-Settled’ status is if the customer has lived in the UK for <5 years. The customer will be allowed to stay in the UK for 5 more years from the date they receive ‘Pre-Settled’ status. This is equivalent to Limited leave to remain. The customer can apply for ‘Settled’ status once they have 5 years continuous residence in the UK.

https://www.gov.uk/settled-status-eu-citizens-families

 

What if an EU national was living in the UK before 31^st December 2020 but has not yet applied to the EU settlement scheme?

 

Unless there is another party on the mortgage who has permanent right to reside, EU settlement status, or is an Irish citizen, the customer will not be able to apply for a mortgage or any further lending until they have confirmation of their ‘Settled’ or ‘Pre-Settled’ status. This is because after 30^th June 2021, a customer may lose their right to reside in the UK if they have not applied to remain in the UK under the scheme. According to current government guidelines they have until the 30^th June 2021 to apply and it is taking up to 5 days for an application to the EU Settlement Scheme to be processed.

 

What if an EU national has moved to the UK after 1^st January 2021 and wants to apply for a mortgage?

 

Anyone who enters the UK after 31st December 2020 and isn’t eligible for the EU Settlement Scheme will be subject to the UK’s new points-based immigration system and will need to apply for a visa. Our ability to lend to the customer will depend on whether the visa they obtain meets our Foreign National policy.

 

What about the pipeline process?

 

Any applications for EU, EEA or Swiss nationals submitted prior to 1^st January 2021 should follow the policy at time of applying and continue to treat these customers as having permanent right to reside. 

Any applications submitted from 1st January 2021 should follow the new policy.

What’s Happening?

 

As part of the Brexit transition, EU, EEA or Swiss citizens living in the UK before 31 December 2020 must apply to the EU Settlement Scheme to continue living in the UK after 30 June 2021.

To ensure we are supporting customers who were living in the UK before 31 December 2020, and in line with leading competitors, we are making a further update to simplify our foreign national policy.

From 1^st January 2021, the treatment of customers with ‘Pre-Settled’ status will be aligned with customers who receive ‘Settled’ status.

 

What you need to know:

 

·         EU, EEA or Swiss citizens who apply to the EU Settlement Scheme will receive either ‘Settled’ or ‘Pre-Settled’ status

·         From 1^st January 2021, customers who receive either ‘Settled’ or ‘Pre-Settled’ status will be subject to normal residential and buy to let policy and lending criteria

·         EU, EEA or Swiss citizens who lived in the UK before 31st December 2020 need to have received confirmation of their “Settlement Status” (Settled or Pre-Settled) before entering a mortgage application for new lending

·         Irish citizens, or customers already with indefinite leave to remain, do not need to apply under the EU Settlement Scheme and therefore will be subject to normal residential and buy to let policy and lending criteria

 

Pipeline Cases

 

·         Any applications for EU, EEA or Swiss nationals submitted prior to 1^st January 2021 should follow the policy at time of applying and continue to treat these customers as having permanent right to reside. 

·         Any applications submitted from 1st January 2021 should follow the new policy.

 

What you need to do:

 

·         Request evidence of the customer’s settlement status or indefinite leave to remain where required. This can be via a copy of their ‘Settled’/’Pre-Settled’ decision letter.

·         We will require you to include a copy of the customers ‘Settled/Pre Settled’ decision letter as part of their application packaging.

We are receiving numerous queries today from brokers regarding their customers who rolled off on the 31^st December. Due to the Bank Holiday, customers rates will not be live on our systems until tomorrow. If you have such a query, please contact us tomorrow where we will be able to provide you will full rate details at this time.

We are pleased to let you know that our dedicated broker line for existing pipeline cases is fully operational.

 

Calls are being answered on average within 10 minutes and with this in mind from the close of business on Wednesday 16th December we are removing our Urgent Request Inbox:

NatWestUrgentrequests@rbs.co.uk

 

All e-mails that we receive in the inbox by the close of business on 16th December will still be actioned, but after this point the inbox will be closed.

 

We would ask therefore that you use the broker line for all existing case update queries by calling  0345 600 0205, in order for us to deal with your query as quickly and efficiently as possible.

 

To help our agents, please ensure when calling that you have your application number ready.

Our LiveTALK opening hours over the Christmas and New Year period are as follows:

 

Week commencing 14th December - open as normal: 9am – 5pm (Wednesdays 10 – 5pm)

 

 

Date	Opening Hours
Monday 21st December	9-5pm
Tuesday 22nd December	9-5pm
Wednesday 23rd December	10-3pm
Thursday 24th December	9-1pm
Friday 25th December	Closed
Monday 28th December	Closed
Tuesday 29th December	9-3pm
Wednesday 30th December	10-3pm
Thursday 31st December	9-3pm
Friday 1st January	Closed

 

Week commencing 4th January - open as normal: 9am – 5pm (Wednesdays 10 – 5pm)

Here’s a full list the changes with product codes in brackets:

 

New Business

Core Range

 

Residential

New Products

2 year fixed rate purchase

[FO25138] 90% LTV, 3.75%, product fee £0

[FO25137] 90% LTV, 3.55%, product fee £995

 

5 year fixed rate purchase

[FO25139] 90% LTV, 3.60%, product fee £995

[FO25140] 90% LTV, 3.80%, product fee £0

 

Help to Buy: shared equity

Residential

New Product Codes – Due to change in H2B Scheme

2 year fixed rate purchase

[FO25141] 60% LTV, 1.48%, product fee £995

[FO25142] 60% LTV, 2.68%, product fee £0

[FO25143] 70% LTV, 1.88%, product fee £995

[FO25144] 70% LTV, 2.68%, product fee £0

[FO25145] 75% LTV, 1.88%, product fee £995

[FO25146] 75% LTV, 2.68%, product fee £0

 

5 year fixed rate purchase

[FO25147] 60% LTV, 1.80%, product fee £995

[FO25148] 60% LTV, 3.39%, product fee £0

[FO25150] 70% LTV, 3.39%, product fee £0

[FO25149] 70% LTV, 2.11%, product fee £995

[FO25151] 75% LTV, 2.11%, product fee £995

[FO25152] 75% LTV, 3.49%, product fee £0

 

2 year fixed rate remortgage

[FO25154] 60% LTV, 3.15%, product fee £0, cashback £500

[FO25153] 60% LTV, 1.91%, product fee £995, cashback £500

[FO25155] 70% LTV, 1.99%, product fee £995, cashback £500

[FO25156] 70% LTV, 3.31%, product fee £0, cashback £500

[FO25157] 75% LTV, 2.08%, product fee £995, cashback £500

[FO25158] 75% LTV, 3.31%, product fee £0, cashback £500

 

5 year fixed rate remortgage

[FO25159] 60% LTV, 2.04%, product fee £995, cashback £500

[FO25160] 60% LTV, 4.44%, product fee £0, cashback £500

[FO25162] 70% LTV, 2.25%, product fee £995, cashback £500

[FO25164] 70% LTV, 4.44%, product fee £0, cashback £500

[FO25167] 75% LTV, 2.25%, product fee £995, cashback £500

[FO25169] 75% LTV, 4.63%, product fee £0, cashback £500

 

Withdrawn

2 year fixed rate purchase

[FO24998] 60% LTV, 1.48%, product fee £995

[FO24999] 60% LTV, 2.68%, product fee £0

[FO25000] 70% LTV, 1.88%, product fee £995

[FO25002] 70% LTV, 2.68%, product fee £0

[FO25004] 75% LTV, 1.88%, product fee £995

[FO25005] 75% LTV, 2.68%, product fee £0

 

2 year fixed rate remortgage

[FO24778] 60% LTV, 3.15%, product fee £0, cashback £500

[FO24852] 60% LTV, 1.91%, product fee £995, cashback £500

[FO24779] 70% LTV, 1.99%, product fee £995, cashback £500

[FO24780] 70% LTV, 3.31%, product fee £0, cashback £500

[FO24783] 75% LTV, 3.31%, product fee £0, cashback £500

[FO24781] 75% LTV, 2.08%, product fee £995, cashback £500

 

5 year fixed rate purchase

[FO25007] 60% LTV, 3.39%, product fee £0

[FO25006] 60% LTV, 1.80%, product fee £995

[FO25008] 70% LTV, 2.11%, product fee £995

[FO25009] 70% LTV, 3.39%, product fee £0

[FO25010] 75% LTV, 2.11%, product fee £995

[FO25011] 75% LTV, 3.49%, product fee £0

 

5 year fixed rate remortgage

[FO24784] 60% LTV, 2.04%, product fee £995, cashback £500

[FO24785] 60% LTV, 4.44%, product fee £0, cashback £500

[FO24787] 70% LTV, 4.44%, product fee £0, cashback £500

[FO24786] 70% LTV, 2.25%, product fee £995, cashback £500

[FO24776] 75% LTV, 2.25%, product fee £995, cashback £500

[FO24782] 75% LTV, 4.63%, product fee £0, cashback £500

 

 

Existing Customer

No Changes

 

 

End dates

 

There are no changes to end dates

 

Transitional arrangements

 

You’ll be able to produce Mortgage Illustrations and submit applications online for existing deals up to 10:30pm Tuesday 15 December, 2020.

 

If you are unable to submit an application online due to a technical issue that cannot be resolved over the phone, then you must submit a paper-based application. In this instance, you must e-mail your BDM by midday on Wednesday 16 December 2020. Requests received after this time will not be considered.

 

Your email must include in bullet points:

 

• Your details - name, company and postcode
• Customer name
• Product applying for
• Amount of mortgage loan
• Reason for paper application - If you have experienced a technical issue a clear description of the problem encountered with error code (if applicable) must be provided
• State whether you were trying to submit via NatWest Intermediary Solutions’ website or the Mortgage Trading Exchange

 

Paper applications must be signed by all applicants and the original received at the following address by close of business on Friday 18 December 2020 for your rate to be honoured:

 

 

FREEPOST NatWest Intermediary Solutions

Mortgage Centre

Cartsdyke Avenue

Greenock

PA15 1ED

What’s happening

 

In light of our improving service levels and to support our brokers and their customers, we are delighted to announce the re-introduction of 90% loan to value (LTV) Residential Purchase mortgages.

 

What you need to know

 

·         The new 90% LTV products will apply to Residential Purchases but will not be available on new build properties.

·         We will allow porting with additional borrowing up to 90% LTV for customers buying a new property.

·         We are happy to accept applications where a customer is able to evidence that the first full scheduled monthly payment on their current mortgage and other financial commitments (loans, utilities etc) has been made having finished their payment holiday. Providing they meet all other our credit scoring  criteria.

·         The guidance is effective from 16 December 2020 for all new qualifying mortgage applications received.

 

Important information

 

Prior to submitting any 90% LTV purchase applications with us it is important to note the following:

·         Please check that your customers mortgage application meets the 90% LTV criteria before submitting, as a credit score will be generated, even if the case cannot proceed.

·         If your customer already has a lower LTV application with us and wants to change to a 90% product, a new application will need to be submitted, resulting in another full underwrite and credit score.

 

Help us help you - Packaging

 

To ensure the application process is as seamless as possible and to help us maintain our service levels, please package cases in accordance with our current packaging requirements: Packaging requirements

 

For more information on what transactions are applicable for our 90% LTV products, please visit our: A-Z of criteria page

 

The information will be live from the 16th December and will be found under ‘Maximum LTV’.

Here’s a full list the changes with product codes in brackets:

 

New Business

 

Core Range

Residential

 

Rate Changes

2 year fixed rate purchase

[FO25058] 60% LTV, decreasing by 9bps from 1.34% to 1.25%, product fee £995

[FO25059] 70% LTV, decreasing by 2bps from 1.59% to 1.57%, product fee £995

[FO25060] 75% LTV, decreasing by 2bps from 1.59% to 1.57%, product fee £995

[FO25061] 80% LTV, decreasing by 15bps from 2.24% to 2.09%, product fee £995

[FO25062] 85% LTV, decreasing by 19bps from 3.09% to 2.90%, product fee £995

 

2 year fixed rate remortgage

[FO25065] 60% LTV, decreasing by 4bps from 1.29% to 1.25%, product fee £995

[FO25066] 70% LTV, decreasing by 5bps from 1.54% to 1.49%, product fee £995

[FO25067] 75% LTV, decreasing by 5bps from 1.54% to 1.49%, product fee £995

[FO25068] 80% LTV, decreasing by 5bps from 2.09% to 2.04%, product fee £995

 

2 year fixed rate remortgage - high value

[FO25086] 60% LTV, decreasing by 7bps from 1.26% to 1.19%, product fee £995

[FO25089] 70% LTV, decreasing by 7bps from 1.51% to 1.44%, product fee £995

[FO25091] 75% LTV, decreasing by 7bps from 1.51% to 1.44%, product fee £995

 

5 year fixed rate purchase

[FO25063] 60% LTV, decreasing by 5bps from 1.44% to 1.39%, product fee £995

[FO25064] 85% LTV, decreasing by 20bps from 3.29% to 3.09%, product fee £995

 

5 year fixed rate remortgage - high value

[FO25094] 60% LTV, decreasing by 7bps from 1.41% to 1.34%, product fee £995

 

5 year fixed rate remortgage

[FO25069] 60% LTV, decreasing by 5bps from 1.44% to 1.39%, product fee £995

[FO25070] 70% LTV, decreasing by 3bps from 1.72% to 1.69%, product fee £995

[FO25071] 75% LTV, decreasing by 3bps from 1.72% to 1.69%, product fee £995

 

Green Mortgages

Residential

Rate Changes

2 year fixed rate purchase

[FO25075] 60% LTV, decreasing by 9bps from 1.31% to 1.22%, product fee £995, cashback £250

[FO25078] 85% LTV, decreasing by 7bps from 2.89% to 2.82%, product fee £995, cashback £250

 

5 year fixed rate purchase

[FO25080] 60% LTV, decreasing by 4bps from 1.41% to 1.37%, product fee £995, cashback £250

[FO25081] 75% LTV, decreasing by 11bps from 1.79% to 1.68%, product fee £995, cashback £250

[FO25083] 85% LTV, decreasing by 4bps from 2.99% to 2.95%, product fee £995, cashback £250

 

 

Existing Customer

 

Core Range

Residential

 

Rate Changes

2 year fixed rate switcher

[FO25101] 60% LTV, decreasing by 3bps from 1.29% to 1.26%, product fee £995

[FO25105] 60% LTV, increasing by 5bps from 1.75% to 1.80%, product fee £0

[FO25107] 70% LTV, decreasing by 5bps from 1.54% to 1.49%, product fee £995

[FO25109] 75% LTV, decreasing by 5bps from 1.54% to 1.49%, product fee £995

[FO25112] 80% LTV, increasing by 14bps from 2.44% to 2.58%, product fee £0

[FO25114] 85% LTV, increasing by 10bps from 2.59% to 2.69%, product fee £995

[FO25116] 85% LTV, increasing by 10bps from 3.03% to 3.13%, product fee £0

[FO25120] 90% LTV, increasing by 10bps from 3.08% to 3.18%, product fee £0

[FO25118] 90% LTV, increasing by 10bps from 2.74% to 2.84%, product fee £995

 

5 year fixed rate switcher

[FO25122] 60% LTV, decreasing by 3bps from 1.44% to 1.41%, product fee £995

[FO25123] 60% LTV, increasing by 5bps from 1.84% to 1.89%, product fee £0

[FO25124] 70% LTV, decreasing by 3bps from 1.72% to 1.69%, product fee £995

[FO25125] 80% LTV, increasing by 7bps from 2.62% to 2.69%, product fee £0

[FO25129] 85% LTV, increasing by 26bps from 2.69% to 2.95%, product fee £995

[FO25130] 90% LTV, increasing by 26bps from 2.98% to 3.24%, product fee £995

 

BTL Standard Switcher Range

Buy To Let

Rate Changes

2 year fixed rate switcher

[FO25131] 60% LTV, increasing by 19bps from 1.60% to 1.79%, product fee £995

[FO25133] 70% LTV, increasing by 6bps from 2.69% to 2.75%, product fee £0

[FO25132] 70% LTV, increasing by 5bps from 1.94% to 1.99%, product fee £995

[FO25134] 75% LTV, increasing by 1bps from 1.98% to 1.99%, product fee £995

[FO25135] 75% LTV, increasing by 1bps from 2.74% to 2.75%, product fee £0

 

5 year fixed rate switcher

[FO25136] 60% LTV, increasing by 8bps from 1.91% to 1.99%, product fee £995

 

End dates

 

There are no changes to end dates

 

Transitional arrangements

 

You’ll be able to produce Mortgage Illustrations and submit applications online for existing deals up to 10:30pm Monday 7 December, 2020.

 

If you are unable to submit an application online due to a technical issue that cannot be resolved over the phone, then you must submit a paper-based application. In this instance, you must e-mail your BDM by midday on Tuesday 8 December 2020. Requests received after this time will not be considered.

 

Your email must include in bullet points:

 

• Your details - name, company and postcode
• Customer name
• Product applying for
• Amount of mortgage loan
• Reason for paper application - If you have experienced a technical issue a clear description of the problem encountered with error code (if applicable) must be provided
• State whether you were trying to submit via NatWest Intermediary Solutions’ website or the Mortgage Trading Exchange

 

Paper applications must be signed by all applicants and the original received at the following address by close of business on Thursday 10 December 2020 for your rate to be honoured:

 

 

FREEPOST NatWest Intermediary Solutions

Mortgage Centre

Cartsdyke Avenue

Greenock

PA15 1ED

A house purchase must complete by the 31^st March 2021 to benefit from the Stamp Duty Land Tax (SDLT) incentive.

According to Zoopla historic data shows that 81% of mortgage applications in December and 54% of applications made in January complete by the end of March. 

Because of the higher than normal housing transactions taking place at the moment it is important to apply as soon as possible and also make sure that each mortgage application you submit is correctly packaged with all the appropriate documentation to give your customers the best chance of benefitting from this incentive. 

We are doing all that we can to support customers looking to benefit from the stamp duty incentive. We have seen increased times taken for local authority searches with a number currently taking longer than six weeks to complete. As part of our support we are pleased to confirm that with immediate effect we can now temporarily accept purchase search indemnity policies, removing a potential barrier for customers looking to benefit from the stamp duty incentive.

 

What can you do to help?

The more you can prepare, the smoother the application process should be. To help us process your customers’ mortgage applications and ensure that their house purchases and moves complete before the deadline, here are a few tips:

 

·         Make sure you have the source each customer’s deposit validated and that the funds are readily available

·         Have evidence of each customer’s income and employment status confirmed

·         If there is anything unusual about a customer’s circumstances please send in a memo with the application

·         Request that your customers engage their Solicitors, Estate Agents and request removals company quotes as early as possible and ensure that all are aware on your target completion date

·         Understand the timescales for completing local authority searches:

Click here

·         Ask customers to alert the vendors’ estate agents that a valuer will need access to the property to conduct a valuation as soon as possible

·         Understand if your customer needs to complete by the 31^st March (we recommend avoiding completion on the 31^st of March as this will be a busy time)

For more information, and to ensure your customers make the most out of the Stamp Duty incentive, please view our top tips guide that you can share with them.

 

Top tips guide.

1.       What is the difference between Partial Furlough and Flexi-Furlough, and what income can be used for customers not yet returned to their full hours?

 

Partial Furlough

Customer has returned to work on a fixed working pattern / number of hours.  Their payslip will include both income earned and income support via the UK Government scheme for their non working hours.

 

For example customer works 4 day per week and is furloughed 1 day per week.

 

The earned income is acceptable and can be used, however the furlough income is not acceptable and cannot be used.

 

Flexi-Furlough

Customer is back at work but not on a set working pattern or fixed number of hours.

 

For example customers works:

- 5 days in week 1

- 3 days in week 2

- 5 days in week 3

- 1 day in week 4

 

Flexi-Furlough is not an acceptable income which can be used, this is not consistent and not evidence of a sustainable level of income.

 

2.       My customer has a planned return to work date and a letter from their employer confirming this.  Can we lend?        

 

No. We require the customer to have returned to work and have received their first full month's payslip(s). This provides suitable evidence to allow us to underwrite reflecting the customers current circumstances.

 

3.       There has been a material change in the application details or the application has been rekeyed due to changes in circumstances.  Can the application proceed under the original policy terms?

 

No - all applications (including re-key and material changes) submitted on or after 01/12/2020 for employed customers must adhere to the new guidance.

 

4.       My customer has multiple jobs and they have not been furloughed from all.  What income can be used?

 

You can use any earned income from the jobs where the customer has returned to work  and can evidence with a payslip(s), unless the customer has been Flexi-Furloughed.

 

5.       ​My customer has been told they have to take some unpaid annual leave by their employer. This will be taken in a one-off period of time, and will affect the matching payslip (e.g. taking off 2 weeks in November so will have a much lower pay in November). Can the customer still apply? How do I calculate their income?         ​

 

The customer should apply once they have returned to work following this unpaid annual leave, and can evidence this with a full month(s) worth of payslip(s) without the impact of the one-off reduction caused by unpaid leave.

               

               

6.       ​My customer has been told they have to take some unpaid annual leave by their employer. This will be taken over a longer period of time (e.g. they must take 20 days off as unpaid over next 6 months). Can the customer still apply? How do I calculate their income?

 

The customer can still apply. To ensure the mortgage is affordable throughout the term, the income used must be the average of the income they will have during the affected time period.

 

For example, if the customer works 22 days per month, receives £2500/month (£30k/year) as salary, and has to take 20 days unpaid over a 6 month period:

 

                Normal work pattern: 22 days X 6 months = 132 days

                Affected work pattern:  132 days (from above) – 22 days unpaid = 110 days

                110 days ÷ 132 days = 83.3%

                83.3% of £2,500 is £2083.33/month. This is annualised for affordability purposes to £25,000

 

The specifics of the unpaid leave arrangement must be evidenced via a letter on letterheaded paper or an email from an identifiable employer email address. This must contain:

 

                How many days/hours of unpaid leave must be taken

                Time period it is to be taken over (e.g. “6 months” or “between xx/xx and yy/yy”)

                The normal amount of days/hours customer works per month

               

               

7.       My customer is on furlough but will start maternity leave before returning to work. OR, My customer has not been furloughed and will be returning to work after their maternity leave. What evidence do I need to support the application?

 

Our business as usual policy applies which includes understanding whether the customer is currently at risk of redundancy and intends to return to work after their maternity leave.

               

8.       ​If we have a joint application where one applicant is impacted but the case passes the affordability assessment without the second applicant income, can we proceed with their application?

 

​Yes if the mortgage is affordable based on acceptable income earned which can be evidenced in line with our policy, then you can proceed with the application.

 

9.       ​The customer has had a temporary increase to their income, for example:

Increase in over time            

Use of savings and family support   

Temporary increase in any benefits

(This is not an exhaustive list)          

 

Temporary increases to income will not be taken into account when assessing a mortgage application as per current process.

               

10.   ​​If an Offer Extension is granted, does the original policy still apply ? (i.e before 01/12/2020)                                  

 

                                                                                                                                                                    

​​​​For Offer Extension's on the existing Property or where there are no changes to the customers circumstances the original policy will apply. Where there have been changes to the customers circumstances, or for cases where the underwrite is impacted (e.g. change to loan size, change of property, change to income etc) the new policy guidance will apply.

                               

11.   ​If the figure from the p60 is lower/higher for overtime/commission/monthly bonus from 3 post furlough payslips, how do we calculate the figure to use?

 

​There has been no change from our standard process regarding calculating overtime/commission/ monthly bonus, see our: Customer Returning from Furlough Packaging Guide

               

12.   For customers who have returned to work post-furlough between 1 and 3 months how will you assess the Basic Income?

 

• We will use the basic income evidenced from all available post-furlough payslips.

• We will  not include any Covid-19 related government support.

 

 

13.   For customers who have returned to work post-furlough between 1 and 3 months how will you assess the Guaranteed Additional Income   (i.e. Benefit Funding, Shift Allowance, Location Allowance e.g. London Weighting)

 

• We will use the guaranteed additional income evidenced  from all available post-furlough payslips.

• We will not include any Covid-19 related government support.                                                                                                                            

 

What’s happening

With the current restrictions and the UK Government extending the Job Retention Scheme until March 2021, we have reviewed and updated our employed policy to ensure we are doing the right thing for customers.

 

At this time our primary purpose remains to ensure that any mortgage we provide to customers is affordable.

 

 

What you need to know

We continue to support customers who have returned to work following furlough, providing they can demonstrate at least one full month’s evidence of their income e.g. payslips.  For customers who cannot provide this evidence, we are unable to accept an application at this time.

 

A return to work letter from the customer’s employer is no longer acceptable evidence.

 

These changes in policy are effective from 01/12/20 for all new employed applications. These changes do not impact employed applications submitted prior to 01/12/20

 

We will continue to review our policy in light of any appropriate changes which affect employed customers. 

 

For all customers not impacted by furlough, there are no changes to our current policies.

 

What you need to do

 

Review and follow the revised policy guidelines for employed customers:

 

Furloughed Customers Packaging Guide

 

Self-employed policy remains the same:

 

Coronavirus Hub

 

Please remember to let us know if there is a change in the customer’s circumstances at any point during the mortgage process.

 

Here’s a full list the changes with product codes in brackets:

 

New Business

Core Range

Residential

 

Rate Changes

2 year fixed rate remortgage

[FO24976] 60% LTV, decreasing by 5bps from 1.34% to 1.29%, product fee £995

 

2 year fixed rate remortgage - high value

[FO25012] 70% LTV, increasing by 5bps from 1.46% to 1.51%, product fee £995

 

2 year fixed rate remortgage

[FO24977] 70% LTV, increasing by 5bps from 1.49% to 1.54%, product fee £995

[FO24978] 75% LTV, increasing by 5bps from 1.49% to 1.54%, product fee £995

 

2 year fixed rate remortgage - high value

[FO25013] 75% LTV, increasing by 5bps from 1.46% to 1.51%, product fee £995

 

2 year fixed rate remortgage

[FO24979] 80% LTV, increasing by 10bps from 1.99% to 2.09%, product fee £995

 

5 year fixed rate remortgage - high value

[FO25014] 60% LTV, decreasing by 2bps from 1.43% to 1.41%, product fee £995

 

5 year fixed rate remortgage

[FO24980] 70% LTV, increasing by 3bps from 1.69% to 1.72%, product fee £995

[FO24981] 75% LTV, increasing by 3bps from 1.69% to 1.72%, product fee £995

[FO24982] 80% LTV, increasing by 20bps from 2.04% to 2.24%, product fee £995

[FO24983] 85% LTV, increasing by 10bps from 2.69% to 2.79%, product fee £995

 

New Products

2 year fixed rate purchase

[FO24956] 60% LTV, 1.34%, product fee £995

[FO24986] 60% LTV, 1.48%, product fee £995

[FO24987] 60% LTV, 2.68%, product fee £0

[FO24999] 60% LTV, 2.68%, product fee £0

[FO24957] 60% LTV, 2.40%, product fee £0

[FO25039] 60% LTV, 1.31% Green, product fee £995, cashback £250

[FO24998] 60% LTV, 1.48%, product fee £995

[FO25001] 70% LTV, 2.68%, product fee £0

[FO25002] 70% LTV, 2.68%, product fee £0

[FO24988] 70% LTV, 1.88%, product fee £995

[FO24959] 70% LTV, 2.45%, product fee £0

[FO24958] 70% LTV, 1.59%, product fee £995

[FO25000] 70% LTV, 1.88%, product fee £995

[FO24991] 75% LTV, 2.68%, product fee £0

[FO24960] 75% LTV, 1.59%, product fee £995

[FO24961] 75% LTV, 2.45%, product fee £0

[FO25040] 75% LTV, 1.56%, product fee £995 Green, cashback £250

[FO25003] 75% LTV, 1.88%, product fee £995

[FO25004] 75% LTV, 1.88%, product fee £995

[FO25005] 75% LTV, 2.68%, product fee £0

[FO24984] 80% LTV, 2.64%, product fee £0, cashback £250

[FO24962] 80% LTV, 2.24%, product fee £995

[FO24963] 80% LTV, 2.94%, product fee £0

[FO24964] 85% LTV, 3.09%, product fee £995

[FO25041] 85% LTV, 2.89% Green, product fee £995, cashback £250

[FO24965] 85% LTV, 3.24%, product fee £0

 

5 year fixed rate purchase

[FO25006] 60% LTV, 1.80%, product fee £995

[FO25042] 60% LTV, 1.41%, product fee £995 Green, cashback £250

[FO24992] 60% LTV, 1.80%, product fee £995

[FO24966] 60% LTV, 1.44%, product fee £995

[FO25007] 60% LTV, 3.39%, product fee £0

[FO24967] 60% LTV, 3.09%, product fee £0

[FO24993] 60% LTV, 3.39%, product fee £0

[FO25008] 70% LTV, 2.11%, product fee £995

[FO24969] 70% LTV, 3.20%, product fee £0

[FO25009] 70% LTV, 3.39%, product fee £0

[FO24994] 70% LTV, 2.11%, product fee £995

[FO24995] 70% LTV, 3.39%, product fee £0

[FO24968] 70% LTV, 1.86%, product fee £995

[FO24996] 75% LTV, 2.11%, product fee £995

[FO24970] 75% LTV, 1.86%, product fee £995

[FO25043] 75% LTV, 1.79%, product fee £995 Green, cashback £250

[FO24997] 75% LTV, 3.49%, product fee £0

[FO25011] 75% LTV, 3.49%, product fee £0

[FO24971] 75% LTV, 3.21%, product fee £0

[FO25010] 75% LTV, 2.11%, product fee £995

[FO24985] 80% LTV, 3.38%, product fee £0, cashback £250

[FO24974] 80% LTV, 3.38%, product fee £0

[FO24972] 80% LTV, 2.29%, product fee £995

[FO25044] 85% LTV, 2.99%, product fee £995 Green, cashback £250

[FO24973] 85% LTV, 3.29%, product fee £995

[FO24975] 85% LTV, 3.39%, product fee £0

 

Withdrawn

2 year fixed rate purchase

[FO24578] 60% LTV, 1.46%, product fee £995, cashback £250

[FO24566] 60% LTV, 1.33%, product fee £995, cashback £250

[FO24830] 60% LTV, 2.68%, product fee £0

[FO24814] 60% LTV, 1.48%, product fee £995, cashback £250

[FO24836] 60% LTV, 2.68%, product fee £0

[FO24815] 60% LTV, 1.48%, product fee £995, cashback £250

[FO24881] 60% LTV, 2.40%, product fee £0

[FO24882] 70% LTV, 2.45%, product fee £0

[FO24831] 70% LTV, 2.68%, product fee £0

[FO24627] 70% LTV, 1.88%, product fee £995, cashback £250

[FO24837] 70% LTV, 2.68%, product fee £0

[FO24581] 70% LTV, 1.81%, product fee £995, cashback £250

[FO24640] 70% LTV, 1.88%, product fee £995, cashback £250

[FO24642] 75% LTV, 1.88%, product fee £995, cashback £250

[FO24832] 75% LTV, 2.68%, product fee £0

[FO24583] 75% LTV, 1.81%, product fee £995, cashback £250

[FO24887] 75% LTV, 2.68%, product fee £0

[FO24629] 75% LTV, 1.88%, product fee £995, cashback £250

[FO24883] 75% LTV, 2.45%, product fee £0

[FO24567] 75% LTV, 1.61%, product fee £995, cashback £250

[FO24824] 80% LTV, 2.64%, product fee £0, cashback £250

[FO24585] 80% LTV, 2.24%, product fee £995, cashback £250

[FO24884] 80% LTV, 2.94%, product fee £0

[FO24568] 85% LTV, 2.89%, product fee £995, cashback £250

[FO24590] 85% LTV, 3.24%, product fee £0

[FO24589] 85% LTV, 3.09%, product fee £995, cashback £250

 

5 year fixed rate purchase

[FO24833] 60% LTV, 3.39%, product fee £0

[FO24569] 60% LTV, 1.50%, product fee £995, cashback £250

[FO24593] 60% LTV, 1.64%, product fee £995, cashback £250

[FO24885] 60% LTV, 3.09%, product fee £0

[FO24644] 60% LTV, 1.80%, product fee £995, cashback £250

[FO24890] 60% LTV, 3.39%, product fee £0

[FO24632] 60% LTV, 1.80%, product fee £995, cashback £250

[FO24838] 70% LTV, 3.39%, product fee £0

[FO24834] 70% LTV, 3.39%, product fee £0

[FO24635] 70% LTV, 2.11%, product fee £995, cashback £250

[FO24646] 70% LTV, 2.11%, product fee £995, cashback £250

[FO24886] 70% LTV, 3.20%, product fee £0

[FO24598] 70% LTV, 1.99%, product fee £995, cashback £250

[FO24570] 75% LTV, 1.79%, product fee £995, cashback £250

[FO24891] 75% LTV, 3.49%, product fee £0

[FO24649] 75% LTV, 2.11%, product fee £995, cashback £250

[FO24637] 75% LTV, 2.11%, product fee £995, cashback £250

[FO24835] 75% LTV, 3.49%, product fee £0

[FO24888] 75% LTV, 3.21%, product fee £0

[FO24600] 75% LTV, 1.99%, product fee £995, cashback £250

[FO24602] 80% LTV, 2.29%, product fee £995, cashback £250

[FO24828] 80% LTV, 3.38%, product fee £0, cashback £250

[FO24889] 80% LTV, 3.38%, product fee £0

[FO24605] 85% LTV, 3.29%, product fee £995, cashback £250

[FO24894] 85% LTV, 3.39%, product fee £0

[FO24573] 85% LTV, 2.99%, product fee £995, cashback £250

 

Buy To Let

Rate Changes

2 year fixed rate remortgage

[FO25027] 60% LTV, decreasing by 70bps from 2.30% to 1.60%, product fee £995

[FO25028] 60% LTV, decreasing by 70bps from 3.47% to 2.77%, product fee £0

[FO25030] 70% LTV, decreasing by 70bps from 3.72% to 3.02%, product fee £0

[FO25029] 70% LTV, decreasing by 66bps from 2.55% to 1.89%, product fee £995

[FO25032] 75% LTV, decreasing by 70bps from 3.77% to 3.07%, product fee £0

[FO25031] 75% LTV, decreasing by 79bps from 2.68% to 1.89%, product fee £995

 

5 year fixed rate remortgage

[FO25034] 60% LTV, decreasing by 70bps from 3.64% to 2.94%, product fee £0

[FO25033] 60% LTV, decreasing by 84bps from 2.75% to 1.91%, product fee £995

[FO25036] 70% LTV, decreasing by 70bps from 4.08% to 3.38%, product fee £0

[FO25035] 70% LTV, decreasing by 83bps from 3.01% to 2.18%, product fee £995

[FO25038] 75% LTV, decreasing by 70bps from 4.17% to 3.47%, product fee £0

[FO25037] 75% LTV, decreasing by 84bps from 3.02% to 2.18%, product fee £995

 

New Products

2 year fixed rate purchase

[FO25015] 60% LTV, 1.60%, product fee £995

[FO25016] 60% LTV, 2.24%, product fee £0

[FO25018] 70% LTV, 2.56%, product fee £0

[FO25017] 70% LTV, 1.98%, product fee £995

[FO25019] 75% LTV, 1.98%, product fee £995

[FO25020] 75% LTV, 2.67%, product fee £0

 

5 year fixed rate purchase

[FO25021] 60% LTV, 1.88%, product fee £995

[FO25022] 60% LTV, 2.67%, product fee £0

[FO25024] 70% LTV, 2.88%, product fee £0

[FO25023] 70% LTV, 2.14%, product fee £995

[FO25025] 75% LTV, 2.18%, product fee £995

[FO25026] 75% LTV, 3.07%, product fee £0

 

Withdrawn

2 year fixed rate purchase

[FO24893] 60% LTV, 2.94%, product fee £0

[FO24892] 60% LTV, 2.05%, product fee £995

[FO24817] 70% LTV, 3.26%, product fee £0

[FO24816] 70% LTV, 2.57%, product fee £995

[FO24818] 75% LTV, 2.57%, product fee £995

[FO24819] 75% LTV, 3.37%, product fee £0

 

5 year fixed rate purchase

[FO24821] 60% LTV, 3.37%, product fee £0

[FO24820] 60% LTV, 2.75%, product fee £995

[FO24825] 70% LTV, 2.88%, product fee £995

[FO24826] 70% LTV, 3.58%, product fee £0

[FO24829] 75% LTV, 3.77%, product fee £0

[FO24827] 75% LTV, 2.88%, product fee £995

 

Exclusive

Buy To Let

Withdrawn

2 year fixed rate purchase

[FO24854] 60% LTV, 2.30%, product fee £995, cashback £250

[FO24795] 60% LTV, 2.51%, product fee £0

[FO24855] 70% LTV, 2.44%, product fee £995, cashback £250

[FO24856] 70% LTV, 3.04%, product fee £0, cashback £250

[FO24822] 75% LTV, 2.44%, product fee £995, cashback £250

[FO24839] 75% LTV, 3.04%, product fee £0, cashback £250

 

2 year fixed rate remortgage

[FO24861] 60% LTV, 2.32%, product fee £995, cashback £250

[FO24860] 60% LTV, 2.88%, product fee £0, cashback £250

[FO24871] 70% LTV, 3.06%, product fee £0, cashback £250

[FO24870] 70% LTV, 2.57%, product fee £995, cashback £250

[FO24873] 75% LTV, 3.08%, product fee £0, cashback £250

[FO24872] 75% LTV, 2.57%, product fee £995, cashback £250

 

5 year fixed rate purchase

[FO24841] 60% LTV, 2.82%, product fee £0, cashback £250

[FO24840] 60% LTV, 2.62%, product fee £995, cashback £250

[FO24857] 70% LTV, 3.17%, product fee £0, cashback £250

[FO24823] 70% LTV, 2.91%, product fee £995

[FO24859] 75% LTV, 3.27%, product fee £0, cashback £250

[FO24858] 75% LTV, 2.96%, product fee £995, cashback £250

 

5 year fixed rate remortgage

[FO24874] 60% LTV, 2.68%, product fee £995, cashback £250

[FO24875] 60% LTV, 2.84%, product fee £0, cashback £250

[FO24876] 70% LTV, 2.97%, product fee £995, cashback £250

[FO24877] 70% LTV, 3.26%, product fee £0, cashback £250

[FO24878] 75% LTV, 2.97%, product fee £995, cashback £250

[FO24879] 75% LTV, 3.26%, product fee £0, cashback £250

 

 

Existing Customer

Core Range

Residential

 

Rate Changes

2 year fixed rate switcher

[FO25045] 60% LTV, decreasing by 5bps from 1.34% to 1.29%, product fee £995

[FO25046] 60% LTV, increasing by 6bps from 1.69% to 1.75%, product fee £0

[FO25047] 70% LTV, increasing by 10bps from 1.44% to 1.54%, product fee £995

[FO25048] 75% LTV, increasing by 10bps from 1.44% to 1.54%, product fee £995

[FO25050] 80% LTV, increasing by 10bps from 2.34% to 2.44%, product fee £0

[FO25049] 80% LTV, increasing by 20bps from 1.89% to 2.09%, product fee £995

[FO25051] 85% LTV, increasing by 5bps from 2.54% to 2.59%, product fee £995

[FO25052] 90% LTV, increasing by 5bps from 2.69% to 2.74%, product fee £995

 

5 year fixed rate switcher

[FO25053] 70% LTV, increasing by 8bps from 1.64% to 1.72%, product fee £995

[FO25054] 75% LTV, increasing by 8bps from 1.64% to 1.72%, product fee £995

[FO25055] 80% LTV, increasing by 20bps from 2.04% to 2.24%, product fee £995

[FO25056] 85% LTV, increasing by 9bps from 2.60% to 2.69%, product fee £995

[FO25057] 90% LTV, increasing by 19bps from 2.79% to 2.98%, product fee £995

 

 

End dates

 

There are no changes to end dates

 

Transitional arrangements

 

You’ll be able to produce Mortgage Illustrations and submit applications online for existing deals up to 10:30pm Monday 23 November, 2020.

 

If you are unable to submit an application online due to a technical issue that cannot be resolved over the phone, then you must submit a paper-based application. In this instance, you must e-mail your BDM by midday on Tuesday 24 November 2020. Requests received after this time will not be considered.

 

Your email must include in bullet points:

 

• Your details - name, company and postcode
• Customer name
• Product applying for
• Amount of mortgage loan
• Reason for paper application - If you have experienced a technical issue a clear description of the problem encountered with error code (if applicable) must be provided
• State whether you were trying to submit via NatWest Intermediary Solutions’ website or the Mortgage Trading Exchange

 

Paper applications must be signed by all applicants and the original received at the following address by close of business on Thursday 26 November 2020 for your rate to be honoured:

 

 

FREEPOST NatWest Intermediary Solutions

Mortgage Centre

Cartsdyke Avenue

Greenock

PA15 1ED

1. My customer has a Limited Company, do I need to review the last 3 months bank statement?

Yes – The company could still have been impacted by Covid-19 and the statements should be reviewed for adverse trends.  If any trends are identified please provide further information in the Self Employed Supplementary Information Sheet

 

2. If a customer is a contract worker and their income will be reducing, how do we assess? For example a contract worker who previously had a £50,000 contract, which has now been replaced with a £35,000 contract.  

You must use the customer's new revised income for affordability assessment.

 

You must obtain evidence of what the customer's new income is (for example, in the form of a new contract). If a customer cannot obtain evidence we cannot help them at this time.

 

3. My customer has had a temporary change to their income such as a business grant, family support or a temporary increase in benefits.  Can I use the increased income when assessing affordability?     

No – You cannot include any temporary income when assessing affordability as per current guidance.

 

Please ensure you adhere to updated guidance if this includes a SEISS grant.

 

4. My customer has applied for the second or subsequent version of the SEISS grant but this was declined – can we lend?             

No. By applying for the grant the customers have declared that there is an ongoing impact to their business from which they derive their source of income.

 

5. My customer has applied for a SEISS grant and is still awaiting an outcome on acceptance OR has received it and is willing to repay it – can we lend?

No. By applying for the grant the customers has declared that there is an ongoing impact to their business, therefore this income cannot be used for affordability purposes.

 

6. Can an application be submitted where only a small amount of the SEISS grant is required to pass affordability?

No.  We will not accept applications where any amount of SEISS grant applied for on/after 14/7/2020 is required to support affordability.

 

7. My customer has received a SEISS grant, can they apply?             

Scenario	Can we lend?
I have not had a grant and my business has not been impacted	Yes
I have had the first grant, no additional grant and business not impacted	Yes
I have applied for a grant on/after 14/07/2020	No
I have taken 2 or more grants, business not impacted	No
My business has been impacted, e.g. has an ongoing reduction in Turnover	No

 

8. My customer has applied for the second or subsequent versions of the SEISS grant but now claims to have returned to pre Covid levels of trading – can we lend?    

No.  As the customer has declared that there is an ongoing impact to their business there will not be an acceptable period of evidence (e.g. 12 months) that they have returned to normal trading levels and sustainable profits.

 

9. There has been a material change in the application details or the application has been rekeyed due to changes in circumstances.  Can the application proceed under the original policy terms?  

No - all applications (including re-key and material changes) submitted on or after 23/11/2020 for self-employed customers must adhere to the new guidance.

 

11.My customers are applying for a joint mortgage, one applicant is self-employed and has income we cannot use (taken a SEISS grant on or after 14/07 and/or is impacted by Covid-19). The mortgage is affordable using their non-self-employed income and/or the other party's income. Can you lend?           

Yes, providing that the other forms of income are sustainable (e.g. employed income, rental income) these can be used as part of the affordability calculation.

 

What’s Happening

 

With the current restrictions and the UK Government extending the SEISS grant until March 2021, we have reviewed and updated our self-employed policy to ensure we are doing the right thing for customers.

 

Since 14 July 2020, individuals applying for a SEISS grant have been required to confirm their business has been impacted by Covid-19 to receive the grant.  Due to this confirmed impact and the potential ongoing effect Covid-19 has to businesses, we have made some changes to our self-employed policy.   

 

At this time our primary purpose remains to ensure that any mortgage we provide to customers is affordable.

 

What you need to know

 

From 24/11/2020, the following income cannot be used to assess mortgage affordability:

 

·         Income derived from a business that has applied for or received a SEISS grant on or after 14 July 2020.

We will continue to consider other forms of income to support an application for self-employed customers whose business have been impacted, i.e. rental, employed income or other businesses where SEISS grants have not been applied for or received.

 

Limited companies are not impacted by this change.

 

We will continue to review our policy in light of any appropriate changes which affect self-employed customers.

 

What you need to do

 

Complete the updated version of the mandatory supplementary information sheet as part of the required packaging when submitting a self-employed application.

 

Mandatory supplementary information sheet

 

Following feedback from our brokers NatWest Intermediary Solutions are pleased to announce a range of changes to their Buy to Let proposition which will implemented from the 23rd November.

 

What’s changing?

 

·         Interest Coverage Ratio (ICR) is reducing from 135% to 125% for basic rate taxpayers.

 

·         Letting agent fees are currently captured for lower rate tax payers, but are not included in the affordability assessment. As we have reduced the ICR, letting agent fees will now be factored in for these customers. Everything else relating to Letting Agent Fees remains the same. 

 

o   For example, a lower rate tax payer not using a letting agent, looking to borrow £200,000, the monthly rental requirements will reduce from £1237.50 to £1145.83.

 

·         The maximum age at the end of the term for Buy to Let applications is increasing from age 70 to age 80.

 

·         Affordability Assessment - For applications where the term goes beyond the customer’s retirement age (for either one or both customers), only the rental income from the property being purchased/re-mortgaged will be used.

The result that you will see from the simple version of our calculator for a customer that is borrowing into retirement will be the final amount that we will lend. Please be aware that in these circumstances, there is no benefit in completing the full calculator. 

 

·         Eligibility Criteria - Rental Income will no longer be used to achieve the minimum eligibility criteria of £25k per annum.  All other sources of acceptable income will remain the same.

 

o   Example 1: a customer who is retiring at age 70 and wishes to take the buy to let mortgage term to age 80 – they’d need to earn a minimum of £25k from acceptable income sources. We will only use the rental income from the property being mortgaged, if it is sufficient to meet our rental requirements.

 

o   Example 2: a customer who has already retired and wishes to take the buy to let term to age 80, they can do so provided that they have a minimum £25k income from acceptable income sources and if the rental income from the property being mortgaged is sufficient to meet our requirements.

 

Transitional Arrangements/Pipeline Cases

 

·         Pipeline Management - Cases submitted before 23rd Nov 2020 will not be affected by these changes unless there is a significant change, such as the case lapsing or new property details required.

 

·         If an existing case would benefit from these changes, underwriters have the discretion to apply them.

 

What’s happening?

 

Following broker feedback we are pleased to announce that from the 23rd November, we are making changes to our Interest Only proposition. Our aim is that this will enable you to help more of your customers secure an Interest Only mortgage with us.

 

We are also making a change to our background affordability calculations to ensure we continue to lend responsibly when assessing customers current and future mortgage eligibility.

 

What you need to know:

 

·         Interest Only acceptable income types will now directly match our capital and interest criteria i.e. we can now accept bonus income when assessing affordability.

 

·         For joint Interest Only applications, we have introduced a new minimum combined income of £100k per year see examples below.

 

·         A sole Applicants minimum qualifying income will remain at £75k per year.

 

Qualifying Income Examples

App Type             Income                 Outcome

Sole                       £75K                      Meets minimum income - £75k sole income criteria

Joint                      £50K + £60K        Meets minimum income - £100k combined income criteria

Joint                      £75K + £20K        Meets minimum income - £75k sole income criteria

Joint                      £50K + £40K        Fails minimum income - Neither £75k sole or £100k joint income

 

Transitional Arrangements/Pipeline Cases

 

·         As a result of the affordability changes, there may be a reduction in the maximum lend compared to previous affordability assessments.

 

·         Pipeline Management - Cases submitted before 23rd Nov 2020 will not be affected by these changes unless there is a significant change, such as the case lapsing or new property details required.

 

·         If an existing case would benefit from these changes, underwriters have the discretion to apply them.

 

Last night the industry came together virtually to celebrate the annual Financial Adviser Service Awards 2020

 

We are delighted that NatWest Intermediary Solutions were recognised and awarded The 5 Star Service Award for the fifth consecutive year, as a result of brokers casting their votes in June reflecting the previous 12 month period.