Product Transfers & Additional Borrowing
ONLY FOR USE BY MORTGAGE INTERMEDIARIES
Important information
- All documentation for the Product Switching journey will be issued by email as the process is now digital. It is imperative that all email addresses are verified prior to applications being submitted.
- This will prevent; Data Protection breaches, delayed customer journeys and financial detriment to customers.
- Please note that incomplete applications automatically lapse on day 14.
- For Additional Borrowing (ADBO) with a Product Switch – this is a 2 step process. The additional borrowing application is assessed and when funds are released the product switch application is progressed. This should be made clear to the customer at the outset.
- For cases where there is more than one sub account switching and they have different expiry dates, these will be keyed as separate switches.
- We will send paperwork for the sub account which is due to expire first and once the rate is accepted and applied on that sub account, we will then send the paperwork for the next sub account.
What are the benefits of Product Transfers with NatWest?
· No additional underwriting.
· Quick, straight forward processing.
· Customers can benefit from additional borrowing at the point of switching (subject to Underwriters decision).
· Valuation options – The customers has the choice of accepting the House Price Index (HPI) value, or if they are not happy with the stated HPI value, they can proceed on the original house valuation or request a standard valuation. (This will be completed at a cost to the customer and they will need to call 0345 302 0190 to arrange this.)
· Exclusive broker rates.
Please note, if your customer is on mortgage payment holiday and wants debt consolidation we will not be able to progress their application
Processing a Product Transfer in 7 easy steps
- Log on to the NatWest Intermediary Solutions website.
- Enter the customer’s basic details, including Mortgage account number, surname, date of birth, Post Code of secured Property.
- Valuation options – Accept the HPI value, proceed on the original house valuation or request a standard valuation to be completed.
- Choose a new deal from our competitive products. Products Page.
- Ready to proceed – Once the above process is complete, all you need to do is confirm your customer is happy to proceed. We’ll then e-mail the documents to the customer and yourself.
- Accepting the deal – Customers are requested to accept the offer within 14 calendar days. (This can be done electronically. It's important to provide us with your customers e-mail address)
- The completion will take place when the existing fixed rate expires, or as soon as possible after receipt of the acceptance where the existing rate has already expired.
Product Transfer Eligibility
The facility is available for customers who are within their roll-off period (6 calendar months before end date), those on a standard variable rate (SVR) and those with ‘track and switch’ functionality. The balance available to switch must also meet the product minimum of £10,000 (for both residential and buy to let customers). The mortgage must have a maximum of 5 sub accounts.
Additional Borrowing - Product and Criteria Eligibility
- To support customers who are looking to release capital from their home (subject to current criteria), we are returning our maximum LTV back to 90% (up from 80%)
- However, if any element of the loan request is to consolidate Debts (as per below) then the maximum LTV remains at 80%
- It’s key to note that Shared Equity & Ownership staircasing requests are NOT considered as debt consolidation and can be offered up to 90% LTV
If, following the property valuation the LTV exceeds 80% and debt consolidation has been requested, the loan amount will need to be reduced to return below 80% LTV
Eligibility
Eligibility Continued
The Process
Packaging Requirements
1) Is your packaging requirements for Additional Borrowing different or is it the same as for new business?
Yes the same as new business.
2) My client is looking to do a number of different home improvements – extension, new kitchen etc. What if any documentation would you expect me to send you regarding the improvements?
If the additional borrowing exceeds £50,000 we would expect to see estimates for work, if there is structural change then appropriate documentation proving the client has planning permission and building warrants in place.
3) Where do I send my packaging documents?
All supporting materials must be sent via e-mail and not through the Document upload portal – please email your supporting documents to intermediarydocs@natwest.com ensuring that the customers existing mortgage account number is in the email title.
4) On submission does the Additional Borrowing case give packaging requirements or a link to our website?
On submission the message is displayed but no specific packaging list will be displayed please refer to our normal packaging requirements for new business as these will apply
Procuration Fees
1) What Procuration Fee will I get paid for the Additional Borrowing and for the Product Switch?
The Additional Borrowing Fee will be paid at the same rate you receive currently for new business with a minimum payment of £250. The Product switch proc fee will be paid at the Product Switch rate i.e. 0.2%
2) How is my Procuration Fee paid?
As the Additional Borrowing and the Product Switch will be processed separately, the first proc fee will be for the Additional Borrowing and this will be paid once the funds are released. The second procuration fee will be for the product switch and this will be paid once the new rate is in effect on the existing mortgage.
Valuations
We will use House Price Index valuations for loans under 60% LTV and under £350,000. Outside of these we will instruct a variety of valuation tools, to get an up to date valuation.
If we need to instruct a valuation above 60% LTV or for loans above £350,000 this will be at the banks expense.
Application Updates & Help
Who can update me on the progress of my customer's Product Transfer?
You can call our dedicated broker line on: 0345 600 0205 for an update on your customer's application
The line is open Monday – Friday, 9am to 5pm.
What do I do if the system isn’t working?
Contact the NWIS LiveTALK team on our homepage