The maximum plot size normally accepted is 4 hectares/10 acres and there should be no evidence of agricultural or commercial activity.
Agricultural restrictions limit the occupancy of a property to persons employed in an agriculture related job. Residential applications for the purchase or remortgage of a customer’s main residence where an agricultural restriction is in place may be considered subject to:
• The applicant must be employed in an agricultural related job; however their primary source of income must not be related to the mortgaged property.
For Remortgages: The section ‘Additional Borrowing Purpose’ on the Full Mortgage Application is there for you to specifically capture a breakdown of the use of funds for the additional borrowing amount you are requesting.
Where a customer requests additional borrowing on a buy to let property, applications cannot be considered in the following circumstances: Gambling, Any form of business purpose (i.e. start up for a new business but please note this does not include buying a buy to let in a limited company name), Unsecured Debt Consolidation
For more information on Addition Borrowing, please visit our dedicated hub here:
Where the customer is in receipt of regular additional income as part of their employment, you should understand the nature of this income to ensure it is considered a variation of acceptable income types (see Income & Packaging Guide), not an expenses related payment and that current levels will continue long term.
Where the description of income elements are unclear on the pay slips, a memo may be required to provide additional information to the underwriter.
Further information on Additional Incomes/Occupations can be seen in the A-Z that include:
The APRC is all fees associated with the mortgage, whether added to the advance or not. This includes application fees, product fees, arrangement fees, booking fees, CHAPS and Telegraphic Transfer fees, fees charged by intermediaries, mortgage exit administration fees (sealing fees) and valuation fees. It is included on the Mortgage Illustration.
There is an additional cost illustration, known as the second APRC. The second APRC presents a stressed interest rate scenario and illustrates what the product APRC would be if bank base interest rates rise to their 20-year high. Mortgages with a fixed rate for the entire term of the deal will not require this illustration.
We calculate the new APRC and second APRC in accordance with the guidance received from the Council of Mortgage Lenders (CML) and include both in the Mortgage Illustration.
Unsecured personal loans are only acceptable for Armed Forces personnel who are eligible for a Forces Help to Buy (FHTB) loan which is an interest-free loan repayable over 10 years:
This will be allowed to be used towards an applicant's deposit but the monthly repayment as detailed on the Ministry of Defence ‘Personal Information Note’ must be included in outgoings for affordability.
The FHTB loan may not be used for the purchase of a second property, including a buy-to-let property.
Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.
Solicitors are required to disclose any transaction in the last six months and, if this happens, cases will be declined after offer unless the circumstances meet one of the following situations in which lending may be considered:
Customer funded purchase: when the customer has funded the purchase using their own funds or funds from a close family member and are now looking to set up a mortgage. The lending would be restricted to the lower of the original purchase price or valuation.
Bridging: residential mortgage applications where the customers required a bridging loan due to delays in selling the existing property, subject to normal underwriting. The previous property has now been sold and the applicants are looking for a mortgage on the new property with funds to be used to repay the bridging loan. Buy to let applications are not acceptable in this situation.
Inherited: a recently inherited property where the beneficiary wishes to release some of the equity for residential or buy to let purposes, or to buy the shares in the property inherited by others (e.g. siblings or joint beneficiaries). We will also consider lending where our customer wishes to purchase the property from a vendor who recently inherited the property.
Porting: where a fixed/discounted rate was ported to a new property but has now expired and the customer wants to remortgage within the 6 month period to gain a new rate. Proof of the rate roll off has to be obtained e.g. mortgage offer/rate roll off letter from the previous lender.
Repossessed property: where the vendor is the mortgage lender in possession i.e. the property has been repossessed within the last six months and is being sold by the mortgage lender or their agent. This does not include repossessed properties being purchased cheaply at auction and then sold on by a third party.
Part exchange: where the vendor is a large national house builder selling a property acquired under a part-exchange scheme.
For guaranteed bonuses we will consider an average of the last two years' payments (cash element only) and use 100% of it in our affordability calculation. Please note that if there has been a sharp decline in the latest year's bonus the underwriter may use 100% of the most recent year's bonus.
For discretionary bonuses we will consider an average of the last two years' payments (cash element only) and use 50% of it in our affordability calculation, of which up to 100% can be used. Please note that if there has been a sharp decline in the latest year's bonus the underwriter may use 50% of the most recent year's bonus. We will not consider deferred bonuses.
For information on monthly, quarterly, bi-annual and yearly bonuses, please refer to our Packaging Requirements.
The maximum properties we can accept for a Portfolio Landlord is 10 BTL or CTL properties mortgaged or unencumbered
Applicants must be at least 18 years old at the time of application. Maximum age will be based on the oldest applicant.
Buy to let (affordability)
Please click on the link below to use our two simplified indication calculators, one for ‘Small Landlords and Like-for-like Remortgages’, the other for ‘Portfolio Landlords and First-Time Buyer Buy to Lets’.
Please note that we have removed the top-slicing ability for Small Landlords and Like-for-Like remortgages. Income will still be used towards Portfolio Landlord and First-Time Buyer applications.
Buy to Let affordability must be assessed using the Buy to Let affordability calculator.
Keying income for Small Landlords and Like for Like Remortgage
The opportunity is provided to capture income for these application types, however, only personal earned income should be keyed.
Rental income from either the subject or background properties should not be keyed on the agreement in principal and full mortgage application .
All background property information including from individual rental properties will be captured elsewhere in the journey
For employed clients who are unable to verify their income in line with our packaging requirements income should be keyed as £0 (This allows the case to be considered based on a maximum lend calculated by ICR and expected rental income alone, subject to credit score).
Buy to Let Packaging
For customers who own a residential and are either small landlords, or portfolio landlords doing a like for like remortgage we do not request documents as standard, however the underwriter can request any information they feel necessary when assessing the application.
If the customer is a non owner occupier and/or a portfolio landlord doing anything other than a like for like remortgage we will need to see 3 months bank statements to evidence rental income (rental must have been received within the last 31 days) and income proof as per our standard packaging requirements. Please see the acceptable income guide for guidance
We have no minimum income requirement for BTL applications. The customer must pass the applicable BTL calculation and credit scoring process. Please see our BTL affordability calculators here.
Before submitting an application please check the property has a valid EPC of E or above on the EPC register here:
Where a mortgage product includes a cashback feature, it will be paid to the customer’s solicitor with their mortgage funds on the day the customer completes. The customer should agree with their solicitor how they would like to receive the cashback.
For brokers submitting applications via intermediary.natwest.com, the declaration you will make when uploading documents now states:
For income/expenditure documents: “I am confirming either that the scanned documentation is a true copy of an original document, or where electronic documentation is being supplied, this is an unaltered document obtained by the client directly from the corresponding business or organisation.”
For Customer Identification/Address: The documents I am submitting are true copies of original documents relating to the party/parties on this application.
• Photograph of a hardcopy document
• Scan of a hardcopy document
• ‘Official’ digital version of a document (e.g. e-payslips, online PDF bank statement etc…)
• The Photograph must be:
· taken from above the document
· Free of distortion/effects
· Well-lit in natural light (not taken with a flash)
· Clear text and numbers
· Easy to read throughout
· Whole document visible
· Document must not be cropped or edited
· PDF, GIF, PNG or JPG format
• Each photo must contain one document/page only
• Screenshots from mobile/tablet/PC/laptop etc
• Photographs of a screen
• Manual documents (e.g. Excel spreadsheets instead of bank statements etc…)
We can accept up to 100% of Child Benefit and Child Tax Credits.
Please note that if an applicant is heavily reliant on these benefits (the ratio of benefits to main income) then please discuss these with our BDA team but be aware that the final decision is subject to underwriting.
The age of an applicant's children may be a factor. We require the awards letter with as part of the application packaging. If the benefit will end for one or more of the children in the next 5 years, consideration should be given to if and how the customer can replace this income. If the income will not be replaced, then this element of the benefit should not be used.
If any party to the application receives an income of greater than £50,000 - Child Benefit must not be included.
Please note the applicant(s) must be entitled to the benefit- e.g. the names on the award letter must match the applicants.
We use the actual amount the customer has declared they pay in our affordability calculations for this commitment. Customers with dependants will be asked about the type of childcare they use, how often and how much they spend.
No evidence is required upon submission, where we identify costs that differ to costs declared on the application, the underwriter may ask further questions to confirm correct figures.
Childcare costs should be considered over the next 5 years and the highest cost should be used for affordability.
Where the customer is currently pregnant, on maternity leave or if childcare arrangements are yet to be made. Customers can suggest likely future costs or you can refer to the national average figures here.
When should childcare costs not be included?
There are several situations where childcare cost should not be captured in the affordability calculations. These include but are not limited to:
• Where customers are using free childcare e.g. a relative to look after their child
• Where the childcare costs are stopping / reducing within the next 6 months
• Where the customer benefits from free childcare hours
• Where a customer is proactively using a childcare provider as a developmental experience and the costs are discretionary
Please provide a memo to explain where applicable.
Consent to Let can be requested by a customer if they are looking to rent out their property on a temporary basis. The Bank's consent must always be sought by a customer prior to renting out their property and the customer will continue to benefit from our standard residential mortgage rates. If agreed, we will issue a letter of consent to the letting of the property and will charge an initial administration fee and an annual fee, which will start on the anniversary of the Consent To Let being agreed.
Customers must have had their mortgage with us for a period of no less than 6 months (unless they are in Armed Forces or living in Tied Accommodation e.g. boarding school teacher, vicar/minster or estate worker) – this is relevant for both existing and new customers.
Customers must not have a Consent To Let on any other properties mortgaged with us.
The fee is £120 initial payment and £120 per annum payable on the anniversary of our agreement to Consent to Let. The fees are waived for (1) customers in the armed forces (2) Customers in Tied Accommodation and (3) customers working abroad for the Foreign & Commonwealth Office.
Should your customer wish to arrange this, please ask them to log on to Manage My Mortgage or call: 0345 302 0190.
Consumer buy-to-let is a type of regulated business introduced by the MCD to provide enhanced protections where buy-to-let customers are not acting for business purposes.
Our approach to identifying these customers is based on how they view their buy-to-let activity. We anticipate consumer buy-to-let will only apply to customers remortgaging a buy-to-let property where their objective is not to benefit from house price growth or rental income.
We include this question on our application: Will the property be let out for investment purposes?
By ‘investment’, we mean that you are looking to benefit from rental income or future house price growth.
If the answer to this question is ‘No’, the following message is displayed: Your selection has indicated consumer buy-to-let status. At present we do not offer this type of lending. In this case, the application will not progress.
We do not offer consumer buy-to-let mortgages.
Consumer buy-to-let will not apply to purchase transactions, customers with existing buy-to-let properties or any properties with current or future family occupancy. We will continue to apply a consent-to-let for existing NatWest mortgage customers looking to let out a property on a residential mortgage, as long as no rent is being paid by a family member as this would be a regulated BTL.
We include a disclosure on the new buy-to-let sales and offer Mortgage Illustrations to make customers aware that their loan is unregulated. We expect customer demand for this type of mortgage to be low and will monitor the emerging market to ensure we are aligned to market forces.
· For PAYE contract workers (agency, fixed term contractors, umbrella contractors) we require one year's evidence (for example, two six-month contracts or four three-month contracts) and a contract in place for minimum of a further three months.
· For zero hours contractors/piece workers there must be a history of employment over the past year and confirmation that a current contract is in place. Income can be verified using the last three months payslips and latest P60 and must demonstrate consistent levels of income.
· CIS contractors : Whilst technically these applicants are self-employed for tax purposes, for our policy process please select EMPLOYED on our Affordability Calculator, AIP and Application Form. We will use the Gross income figure (minus expenses) shown over the last 12 months from the contract vouchers/statements (applicants also require a current contract and may be asked to confirm there is ongoing work available)
High income contractors
For contractors earning over £75,000 with a day rate, we’ll calculate their income as their average weekly contract income multiplied by 46, provided they can confirm evidence of:
their latest 3 months’ consecutive personal bank statements for their main account (not required if their main account is with NatWest or RBS).
where significant business expenses are identified on the application, 3 months’ consecutive bank statements (personal or business) detailing these.
a copy of contract(s) to encompass a 12-month period, with a minimum of 6 months’ contract(s) already completed immediately preceding the date of application.
they have taken no more than a six week break between contracts in the 12-month period.
the tax position is paid and up to date.
Where a day rate contractor has switched/is switching to either a Fixed Short Term contract (as employee on PAYE) or to be paid via an Umbrella Company, then we will still seek to assist on such cases provided that our existing high income day rate contractor criteria is met.
For Fixed Short Term Contracts (as employee on PAYE), please include the most recent 4 weekly pay slips and a copy of the contract. If the contract is yet to start please provide a copy of the contract. If the applicant does not yet have 4 weekly pay slips then a copy of the contract along with any pay slips received so far should be provided.
For Umbrella Company Contracts, please include the most recent 4 weekly pay slips and a copy of the contract. If the contract is yet to start then a copy of the contract will be required and we also need to know the amount to be levied by the Umbrella Company for use of their services – this figure will need to be deducted from the customer’s income. If this is not clear, we may not be able to assess the application until we see sight of the first pay slip.
When a contractor has reverted to Fixed Short Term contracts (as employee on PAYE) or Umbrella Company contracts, we still wish the cases to be submitted as ‘self-employed’. This is our risk appetite, given the complex nature of these arrangements and the contractors most recent contracting history.
For any cases that do not fit under the above criteria then our standard PAYE contract worker policy will be applicable.
Credit scoring is a statistical tool used to assess an applicant for credit facilities and ranks applicants by probability of default. All applicants will be assessed using credit score and credit reference information obtained from multiple credit reference agencies in addition to one or more of the following:
Information supplied as part of the application process.
Internal data relating to existing account(s) with the group.
We cannot process appeals for adverse credit scores unless this is a like for like (or less) borrowing on a porting case where the case is in the customer's best interests.
Transactions at undervalue/gifted deposits: the purchase of a property from a family member or family business where the purchase price is less than the value and the vendor does not receive any monies for the difference between the purchase price and the valuation.
This situation is only permitted where there is a family connection and is subject to the solicitors providing a clear report on title or appropriate indemnity insurance. The maximum lend can be based on the valuation, not the actual purchase price. Provision of monies over and above the actual purchase price can be agreed at underwriter/sanctioner discretion subject to standard maximum LTV/FTVs.
You can amend the property details on an existing case providing the application was submitted less than 6 months ago or the original offer is not more than six months old. You will need to complete this form and upload it to the file. You will also need to provide up to date packaging. The case will be reassessed and recredit scored based at the time of requesting the change.
If the application was submitted over 6 months ago then a new application is required.
We cannot lend to anybody working in the UK who has or may have diplomatic immunity under the Geneva Convention or inter-government treaties. This applies at all LTV levels, and is because the application would be immune from UK laws and we wouldn't be able to enforce repossession.
An early repayment charge will be incurred on any overpayment that exceeds the annual 20% limit. Please refer to the early repayment section of your Mortgage Illustration or offer document for information on early repayment charges that would be incurred if any overpayment exceeds the annual 20% limit.
Applicants must have been living in the UK for a minimum of six months and have had six months' continuous employment in the UK. We class it as continuous where there is no break of more than 3 weeks between employments. The client would need to be in their current position for at least one month and have one month’s payslip showing their new income. If self-employed, two years accounts required.
We rely upon the professional opinion of our valuers to confirm if a property shows the presence of potentially combustible cladding or if there are other fire safety concerns. Should they feel this is the case, they may request an EWS1 form, if there is not one already available for the building., or confirmation of remediation is not available through the government remediation portal (Please see EWS1 Guidance for information of the requirements).
Where an EWS1 form is requested and not available, but alternative evidence of remediation is available (e.g. letter of comfort from developer or FRAEW etc) this can be considered on a case by case basis.
Where no signs of cladding are present and there are no other concerns, the valuation will proceed without the need of an EWS1 form.
What is Accepted?
Properties that are A1, A2 or B1 rated are acceptable as standard.
Properties in England that are A3 or B2 rated, can be considered where they are eligible under the Government Remediation Scheme and a Leaseholder Deed of Certificate can be provided (see further information below).
Properties in England that are A3 or B2 rated can be considered where they are eligible under the Developer Remediation Scheme (see further information below).
Please note that properties rated A3 or B2 may have an impact on the original valuation figure and cannot be appealed.
All valuations are still subject to valuers’ comments.
What is not currently Accepted?
A3 or B2 rated properties outside of England (i.e. Scotland, Wales).
Please note that whilst these types of properties are not currently accepted, this policy is under continuous review
A3 or B2 rated Eligible Buildings - Leaseholder Deed of Certificate
This process will support properties rated A3 or B2 for England only, being remediated through the Government Remediation Scheme and the building must be 11 meters or higher.
Leaseholders in eligible buildings will need to complete and submit a Leaseholder Deeds of Certificate to the building freeholder.
For purchases the Deed of Certificate would need to be obtained from the Vendor.
We will lend based on a new after repairs figure as confirmed by the valuer on an amended valuation report, as it stands today, before the remediation work will be completed.
For further information on Leaseholder Deed of Certificates, please utilise this link.
Product fee: this is the fee payable for the selected product and can be added to the loan.
Legal fees: these are paid to the solicitor for legal work done on behalf of the customer (i.e. transfer owenership of the property to them) and work undertaken on behalf of the lender (e.g. registering the mortgage deed).
Occupier's consent form fee: this applies to other people living in the property age 17 or over (excluding dependants under 26). If the property is in England or Wales these people will need to sign a consent form and receive independent legal advice prior to completion, for which they are likely to be charged a fee.
Variable valuation fee: this covers the cost of the valuation.
CHAPS fee: this is a charge for sending the mortgage funds to the customer's solicitor on completion (£30).
Early repayment charge: this is payable if customer repays all or part of a mortgage during the deal period.
Adding fees to the loan: product fees are the only fees that can be added to the advance.
Future fees: once your client's mortgage is set up, they may need to pay one-off fees for other services. These include changing the date of direct debit collection, duplicate statements, adding or removing someone from their title deeds.
For more information, please review the below document:
We capture the following commitments in the ‘Financial Commitments’ section of the application form. You should ensure that the commitments captured here total the same amount of what you have used in the affordability calculator. (see also ‘Loans / Credit Cards’)
· Maintenance / Child Support
· School Fees
· Childcare costs
· Adult care costs
· Ground rent
· Service Charge
· Estate Charge
· Help to buy loan
· Other committed expenditure
When using ‘Other Committed Expenditure’ please ensure you provide specific detail of the commitment captured.
‘Adult Care costs’ relate to an ongoing cost incurred to care for a dependent adult. For example, long term care for elderly dependants.
For ‘Help to Buy Loan’ please include 3% of the equity share (divided by 12) as a monthly commitment. See also ‘Shared Equity’ section for further detail.
For specific guidance relating to Childcare costs refer to ‘Childcare costs’ section.
For specific guidance relating to contractors ‘Significant Business Expenses’ refer to the ‘Contractors’ section.
Where all or part of an applicant's income used to make the mortgage repayments is paid to them in a foreign currency, the MCD requires advisers to provide additional point of sale risk disclosures. It also requires lenders to monitor the customer’s foreign exchange exposure and notify them when it deviates adversely by 20% or more from the exchange rate at the point that the mortgage was completed.
The currencies we accept are: Great British Pound, Euro, Australian Dollar, Bulgarian Lev, Canadian Dollar, Croatian Kuna, Czech Koruna, Danish Krone, Hungarian Forint, Japanese Yen, New Zealand Dollar, Norwegian Krone, Polish Zloty, Romanian Leu, Singapore Dollar, Swedish Krona, Swiss Franc and United States Dollar.
All applicants must be UK residents at time of application.
Normal lending limits & LTV’s will apply where the applicant(s) has:
Permanent “Right to Reside” or Indefinite Leave to Remain (ILR).
Settled or pre-settled (including non-EU nationals who also hold this status e.g. via an eligible family member).
For joint applications, where only one party holds one of the above the application normal lending limits & LTV’s will apply.
For customers who do not have permanent right to reside, the maximum LTV is restricted to 75% on a Capital & Repayment basis only - Interest Only is not available. The following requirements to be met:
At time of application the customer’s visa MUST have at least 6 months remaining.
Source of deposit must come from the customer’s own resources. Foreign National customers can still receive New Build incentives but the remaining deposit sources must come from the customer’s own resources.
If the applicant is a non-British or Non-EU national – we will ALWAYS need a copy of a passport and a valid Visa or share code documentation (https://www.gov.uk/view-prove-immigration-status) at the time of application. We will need to see both pages of the VISA to confirm Name, DOB and Validity.
Minimum time in the UK- there is no minimum time in the UK. However, if you wish to use income for the client then they need to have been living and working in the UK for 6 months. Please note the application will be subject to credit scoring.
We can consider income that is received by Foster Carers.
Foster Carers should provide Local Authority confirmation of the last two years’ payments received, along with confirmation that the customer is still a registered Foster Carer from the Local Authority.
HMRC generally treat foster carers as being self-employed. However, the SA302 is only used to determine any tax and NI payable after any qualifying amount has been deducted.
Acceptable but only where it is possible to enforce positive covenants against other occupants of the building i.e. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents
Maximum Loan to Value is restricted to 90% (75% for 2nd hand Buy to Lets and 75% for new build Buy to Lets)
AVM / HPI valuations are not suitable for this type of property therefore a standard valuation will be instructed
On a remortgage, our fee assisted mortgage products can be used meaning a valuation fee will not be payable. However our free legal service is not suitable for this type of property. Our appointed solicitors may be able to act but additional costs will be payable to them due to the extra work required. Alternatively our solicitors may advise that they cannot act and the customer will then have to appoint their own solicitor at their own cost
We reserve the right to ask for proof of deposit on all mortgage applications. We do not ask you to submit evidence of this up-front, however the underwriter may wish to see evidence where they have any concerns or doubts.
Gifted deposit: family gift
We accept deposits (and gifts) from parents and guardians and treat them as if they were the applicant’s own deposit. This applies even where the money is advanced against a formal loan agreement or a second charge is put in place to secure the parents’ rights. Any monthly cost relating to a formal loan agreement must be included in the affordability calculation.
Gifted deposit: Third parties (not sellers / vendors
Are an acceptable source of customer deposit, but only where there is no repayment required.
Gifted Deposits – Foreign Nationals
Foreign National customers who do not have permanent right to reside, EU settlement status, or Irish citizenship are required to pay their deposit from their own resources, this means they cannot use a gifted deposit, and in line with current policy, the customer’s visa must have at least 6 months remaining. Builders Incentives Policy for New Build properties remains unchanged. The remaining deposit sources must come from the customer’s own resources
Gifted deposit: Vendor
Vendor gifted deposits are only acceptable where no repayment is required. They must be treated as an incentive and be deducted from the gross purchase price to establish the net purchase price of the property. If, for example, the vendor is offering to pay Stamp Duty/legal fees/cashback on the property being purchased this amount must be treated as an incentive and be deducted from the gross purchase price to obtain the net purchase price. We will base our maximum lend on the net purchase price or valuation whichever is the lower, with the applicant putting their own deposit in.
Gifted deposit: Gifted Equity/Concessionary
The purchase of a property from a family member/family business where the purchase price is less than the value and the vendor does not receive any monies for the difference between the purchase price and the valuation. This situation is only permitted where there is a family connection and subject to the Solicitors providing a clear report on title or appropriate indemnity insurance. Please see discounted purchase/concessionary for more information
Gifted deposit: Letter
Gifted deposit letter- This will be required in all gifted deposit circumstances. There is a template letter in the forms and guides section of the website. Gifted Deposit Letter
Green mortgages are available to all intermediaries for all residential and Buy to Let properties with an energy performance rating of A or B and specific new build developer properties. Available for Purchase, Porting & Remortgage applications.
Please note the following information:
Property must be in the UK.
There must be either a valid Energy Performance Certificate (EPC) listed on the registers detailed below with a rating of A or B to be eligible or a property from our list of agreed new build developers
No other EPC data registers or documentation will be accepted, for example a Predicted Energy Assessment (PEA).
Properties where there is currently only a proposed or anticipated EPC Rating of A or B are not eligible
This also includes any subsidiaries of these companies.
If you are submitting an application from a firm that is not on the above list, it is the brokers responsibility to ensure the appropriately rated A or B certificate is in place prior to the application submission. Please consult the above EPC registers prior to submitting an application
If an EPC can be collected from the new build site and is found to be less than an EPC of a B at the time of application (the valuation stage), the customer will not be eligible for the Green Mortgage product. We will however let your customers choose a product they would have been eligible for at the time they submitted the application
EPC must be valid within 10 years since production
No additional documentation to our standard application packaging requirements is required to be submitted
Available to first time buyers and existing homeowners
Products available up to 85% Loan To Value
Not applicable for Shared Equity or Help to Buy applications
All standard NatWest lending rules and policies apply
For further information, please visit our dedicated Green Mortgage hub: Green Mortgages
Customers with a Help to Buy Shared Equity mortgage with another lender will be able to remortgage to us on a like for like basis, keeping the same balance and term. To switch, customers need to notify the Home and Communities Agency (HCA) and, if applicable, the Developer Lender for consent to change mortgage lender.
Customers are required to pay a Deed of Postponement administration fee of £115 to the HCA through their scheme administrators (Target) and need to do this directly themselves – they can call them on 0345 848 0235.
Customers are required to pay a Deed of Postponement fee of £150 + VAT (Some developers also charge £150 when changing mortgage provider) and £95 + VAT for additional legal work to complete this by our solicitors whilst interacting with Target.
Customers will also be required to pay a CHAPS fee of £30 + VAT. (If there is any remaining funds to be paid back to the customer there is an additional chaps fee of £30 + VAT (customer has option to have this paid by cheque free of charge).
Customers wanting to complete a Transfer of Title to remove a party from the mortgage are required to pay an administration fee of £50 to the HCA.
Our solicitors will act on behalf of the customer to process their application and provide the scheme administrator, Target, with the necessary paperwork.
All Help to Buy Shared Equity Scheme rules and policies apply.
If a customer is looking to repay any shared equity loan then we can also help with any of our standard remortgage products.
3% of the equity share will need to be factored into the affordability calculation as a monthly commitment.
For all new cases please check affordability through our calculators before running an agreement in principle or full mortgage applications
Once you complete an AIP or full mortgage application we will confirm the basic packaging for your case, however please note that this will only show requirements on basic income, if there is any form of additional income please refer to our income and packaging guide for additional documentation
As part of the scoring process, we will attempt to electronically verify and validate the identity of an applicant. If successful, you will receive a message at the point of application submission to confirm that we will not require any further proof of identity for your customer. Where we are unable to verify their identity, you will be asked to send us certified copies of their identity documents.
In addition to standard mortgage criteria the following also applies for Interest only mortgages:
Minimum income of £75,000 for sole applicants.
For joint applications at least one applicant can earn £75,000, or the joint applicants can earn a combined income of £100,000.
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
Both new and existing customers may apply.
LTV of up to 75% (if repayment strategy is Sale of Property interest only amount cannot exceed 50% LTV. A further 25% LTV can be borrowed on a C&I repayment basis).
Residential - Maximum term of 35 years (30 years if a loan is more than £500,000)
Buy to let - Maximum term of 35 years if the loan is more than £500,000
Age range of 18-70.
Minimum interest only portion of loan is £25,000.
Available for purchase (including first time buyer), re-mortgage, additional borrowing and porting.
Debt consolidation can be done on a repayment basis, please speak to your BDM for more information
Where the sale of main residential property is the Repayment Strategy (RS) the following applies:
Mandatory Packaging requirement – We will always require the Interest Only form to be completed by the customer to confirm their intention is to sell the property and use the remaining equity to downsize.
Where the entire mortgage is on IO the property must have a minimum equity of £200,000
Where there is an element of IO and Capital & Interest (C&I) the underwriter must be satisfied there is a minimum of £200,000 equity at end of term when C&I element has been repaid.
The main residential property cannot be used as the RS for a second home that the applicant does not reside in.
Customers who do not have the right to reside for the duration of the mortgage. (For joint applications when one party has the right to reside for the duration of the mortgage and the other does not, the application should be treated as if both applicants have the right to reside the duration of the mortgage).
The valuer will assess each case on an individual basis taking into account factors such as marketability, mortgageabilty and insurability. For more information on the RICS categories and definitions, and the NatWest Groups requirements please view this document.
Where a customer is relocating their residential home an underwriter may ask for clarity on the customers ongoing employment sustainability.
Please update the notes section of the Mortgage Application Form or send in a memo clarifying your consideration where you have accounted for unreasonable commuting, existing role consistency in the new area or establishing a new customer base to support the mortgage application.
Where the remaining leasehold term is less than 85 years, the value of the property will continue to reduce until the lease is extended. This may result in the valuation being less than the purchase price or estimated value.
In all instances, assessment will be made based on the valuer's comments.
We require a minimum of 30 years to be remaining on the lease at the end of the mortgage term. However, some flexibility is allowed for properties in prime locations in central London, where the minimum lease left at the end of the mortgage should be 10 years.
We are not able accept residential lending into retirement applications.
Where a customer is already retired and in receipt of retirement income we can consider these applications as long as they meet our Age Requirements.
We are investigating a solution that would allow a customer whose existing term takes them into retirement to port like for like via a broker channel in the future. Currently, where the customer is looking to do this and their existing term goes into retirement, they should contact us directly: www.natwest.com/mortgages.html
We will not allow customers to take any additional borrowing where the additional borrowing term extends into retirement.
All the above requirements apply equally to employed and self-employed applicants.
If the rent received on the existing property covers the mortgage payment we will not include this in our affordability assessment on the new property.
Applicants need a letter from a local ARLA-registered letting agent or estate agent to show the expected rental income. If it covers the mortgage cost then this payment can generally be disregarded from the affordability calculation. If there is a shortfall in rent then this must be disclosed as a monthly commitment on the affordability calculator.
These applications can be considered, for more information on our Buy to Let criteria, please consult our Buy to Let Hub
For limited company directors applying for a mortgage, we take an average of their last two years' salary and dividends. Directors must own at least 20% of the company.
For self-employed applicants where there has been a reduction in profits/income from the previous year to the most recent year, underwriters may use the most recent lower figure, rather than an average of the last two years.
If the customer intends to run a business from the property, we can provide a mortgage only if the property is being purchased primarily for residential use and can be readily restored in its entirety to owner occupation. Typical examples of these customers might be architects, accountants, chiropractors, physiotherapists, etc. running a business from an office or room in their home.
To qualify for a residential mortgage or buy-to-let, the work area of the property must be no greater than 20% of the total property area. Live/Work properties are not to be used as commercial outlets, as only one room in the property is dedicated for business use.
Where a customer is purchasing a purpose built Live/Work unit located in a development of a similar type properties, we will not offer a residential mortgage. The title restrictions on this type of property can affect future sale. Unacceptable commercial activity includes but is not limited to:
Bed and breakfast, guest houses, holiday let accommodation
Country estates, equestrian centres, campsites, kennels, farms or agricultural use or livestock kept for commercial purposes, forestry, fishing/hunting rights and crofts (regardless of whether this is to meet agricultural restrictions)
We capture the following commitments in the ‘Loans / Credit Cards’ section of the application form. You should ensure that the commitments captured here total the same amount of what you have used in the affordability calculator. (see also ‘Financial Commitments’)
We can accept income from court ordered maintenance, child maintenance, and income from family-based or non-court ordered maintenance and child maintenance provided that the payments have been in place for at least three months and are expected to continue at the current level for the foreseeable future, taking into account the age of children.
We require evidence of an applicant's income via their most recent three months' bank statements and their last three months' payslips, prior to their maternity leave. We will use the applicant's basic salary they earned prior to going on maternity leave for affordability purposes. We reserve the right to request additional information if required. We will ask the applicant to confirm that they intend to return to work after their maternity leave but will not seek the employer to confirm.
The European Mortgage Credit Directive (MCD) came into force on 21st March 2016. It aims to harmonise mortgage markets across the European Economic Area, ensuring that mortgage firms act fairly and professionally and that their staff have an appropriate level of knowledge and competence for advising, manufacturing and servicing mortgages. The key issues that lenders and brokers had to incorporate into their businesses were:
The Key Facts Illustration (KFI) was replaced by the new European Standard Information Sheet (ESIS), which incorporates a new Annual Percentage Rate of Charge (APRC) and second APRC.
A new approach to monitoring customers’ foreign exchange exposure, including where part or all of their income is in a currency other than sterling.
A new classification of consumer buy-to-let mortgages.
A new 7-day reflection period.
Greater transparency over declined applications.
Regulation of second charge lending.
European Standard Information Sheet (ESIS): the MCD replaced the old sale and offer Key Facts Illustration (KFI) documentation with a new European Standard Information Sheet (ESIS) template, called a Mortgage Illustration in the UK. This document includes some additional disclosures for customers to ensure they fully understand their mortgage product and the risks of future interest rate increases. Transitional arrangements are in place to enable lenders to use a KFI 'top-up' approach before moving to the new Mortgage Illustration no later than March 2019. We have implemented the use of the new Mortgage Illustration without the transitional step of using the KFI 'top-up'.
7-day reflection period: the MCD introduced a new 7-day reflection period to ensure borrowers have sufficient time to duly consider the various offers they receive. Therefore, when a mortgage offer is made to a customer, there is a 7-day reflection period where the customer’s offer will remain valid for them to accept. At any point during this period the customer can accept the offer, and likewise reject it, or allow the offer to lapse.
We already give our customers longer than 7 days for them to consider offers they receive, so this will not have any impact on our current processes. If a customer wishes to complete the mortgage at any point during the 7-day reflection period they can waive the period by accepting the offer. We will still retain our right to review our decision to lend should new information be provided that changes a customer's eligibility.
Mortgage application declines: the MCD required greater transparency when a mortgage application is declined by a lender. If a customer has their application declined, they need to be told of this decision in a timely manner. Furthermore, if the decline is as a result of information held about the customer by a credit reference agency, the applicant must be informed of the particular agency used.
We utilise multiple credit reference agencies. Where a customer’s application is being arranged by an intermediary and is declined, it is the responsibility of the intermediary to inform the customer of the credit reference agency used if this is the reason for the decline.
Regulation of second charge mortgages: the MCD required that second charge lending becomes subject to FCA mortgage rules. Lenders’ and intermediaries’ existing mortgage permissions enable them to operate in the second charge lending sector and the FCA contacted them in the first quarter of 2016 to find out if they intend to do so. We do not currently operate in the second charge lending sector and have no intentions to do so.
The UK Government has announced new support for borrowers who are struggling with their mortgage payments. We're committed to helping our customers through this difficult time and we're pleased to be a part of this Mortgage Charter to help ease the pressure for our customers.
As of 22nd December 2022 we have withdrawn from the Mortgage Guarantee Scheme. All Mortgage Guarantee Scheme applications submitted before the withdrawal and in the pipeline will be able to progress as normal.
Mortgage Prisoner customers should approach an FCA Mortgage Prisoner approved broker to enquire and apply. We are unable to accept applications from brokers who are not registered and approved by the FCA for Mortgage Prisoner cases.
We contacted all the Mortgage Prisoner FCA approved firms at the point that the FCA launched the Mortgage Prisoner initiative, with guidance on how to submit this type of application to us. Should your firm not have received this guidance or have only recently been approved to provide these mortgages, first please check that your firm is named in the FCA approved list via the link above. Once your firm’s name appears on the FCA approved list, contact your BDM who will be able to provide you with the guidance.
Mortgage Prisoner customers should be referred to their current mortgage provider for more details on their options.
A new build is defined as any property built, first occupied in its current state or significantly modernised, refurbished or altered within the last two years.
The maximum loan-to-value on a residential new build house is 85% (75% for buy-to-let). For a residential new build flat, the maximum is 75% (also 75% for new build buy-to-let flats). The amount will be calculated on the net purchase price or the valuation, whichever is the lower. Also see 'Builder's Incentives' and 'Offer of Loan - validity'
For New Build Lending Limits and Max LTVs, please utilise our New Build Hub:
Estate Charges relating to the maintenance of communal areas on a new build site should be provided at the time of application
Full details of Ground Rent & Service Charges needs to be included on the application under ‘other committed expenditure’
New build Structural Warranties
We will only lend on New Builds/ Renovations where one of the following 10 year or more Structural Warranties are in place:
Zurich Municipal (not available from August 09)
Trenwick International (N/A for Northern Ireland)
Build Zone & Buildcare (N/A for Northern Ireland)
Building Lifeplans Limited (BLP, Allianz Guarantee )
Ward Cole (12 year structural warranty) - (N/A for Northern Ireland)
LABC (New Home Warranty – not self build) - (N/A for Northern Ireland)
Castle 10 ( Checkmate)
Build Assure (New Home Structural Defects Insurance)
Global Home Warranties
The Q Policy
Protek New Home Warranty
Aedis Group Homeproof Structural Warranties
International Construction Warranties
One Guarantee Ltd
ABC+ Warranty & Architects Certificate
BOPAS (Build Offsite Assurance Scheme) - (N/A for Northern Ireland)
Ark Residential New Build Latent Defects Insurance
* Premier Guarantee Warranties for flats will be referred to us by the acting solicitor – check the amount of cover at least equals the reinstatement figure on the Valuation report.
Professional Consultant Certificate
In the absence of any of the above warranties we will accept a Professional Consultant Certificate, from a suitably qualified professional, if provided in the format detailed in the CML Lenders Handbook. The Solicitor acting for the Bank should confirm the requirements are met and that the Certificate was issued prior to exchange of contracts. Architects certificates without the benefit of the Professional Consultant Certificate are not acceptable.
Structural warranties issued retrospectively cannot be accepted.
This is received by medical staff for flexible shift work
Where a customer receives ‘bank’ income in addition to their main NHS employment this should be treated as overtime (this may be evidenced on separate / additional payslips to the customer’s main income)
· Where a customer is only in receipt of ‘bank’ income, this should be treated as Zero-Hour contractor income.
For New Build applications, an extension can be requested on two further occasions for a maximum period of three months each. The first extension should be requested within thirty days of the initial 6 month offer period expiring.
If both extensions are granted, customers could have a total offer period of up to 12 months.
Offer Extensions will be subject to confirmation of a successful credit search (no additional footprint will be made) and a refreshed property valuation that's free.
Equally as important, the original deal will still be valid or customers can choose a new deal. This means that if there is a delay in the completion of the property the customer won’t miss out on their chosen deal, which would be especially beneficial if rates rise.
Offers can be extended twice, any 3 month extension granted will apply from the date the offer expired
Offer extension applications should be submitted within thirty days of the initial offer period or within 30 days of the first offer extension expiring.
To apply for a new build offer extension, please use the below form:
You can overpay a maximum of 20% of your outstanding mortgage balance in each 12 month period – commencing on completion of your mortgage and continuing from each anniversary of that date until the end date of the rate – without incurring an early repayment charge. If your mortgage is made up of more than one part you can overpay up to a maximum of 20% of the outstanding balance of each part.
An early repayment charge will be incurred on any overpayment that exceeds the annual 20% limit. You benefit immediately from overpaying directly to your mortgage. If you make an overpayment or lump sum payment then the amount you owe, and the amount of interest you pay, is reduced immediately.
Regular overpayments:You can arrange to set up, discontinue or alter a regular overpayment in writing or by telephone at any time after completion of the loan. We must receive your request at least 14 days prior to your next payment day in order to be processed in time for that payment, otherwise the change will take effect from the following your payment day.
Regular overpayment amounts will be collected with your monthly payment and will not be varied automatically as a result of any change to the interest rate. The agreed overpayment will continue to be collected with the revised monthly payment after any such change.
Pilot/Cabin crew can have multiple elements to their income (See Additional Income section) that may also benefit from tax relief, which is acceptable. Please note that expenses payments or reimbursement for costs cannot be used as income.
Ported applications can be submitted online and the generic ‘Ported Product’ should be selected from the drop down product menu. Full details of the product mix should be supplied in the additional information section.
You can obtain your illustration by submitting the mortgage illustration request form on our website under forms and guides.
The application will need card details to be entered to be able to submit. If there is a top up product which comes with a free valuation the fee will not be payable but if it is a like for like port or the top up product does not have a free valuation a valuation fee will be payable.
Log in and complete the customer details in the usual way. Select the client type as a ‘New Customer’. Key in the existing mortgage and state that this is to be redeemed.
When keying the full application (not on AIP) on the ‘New Loan Details’ screen there is a question relating to porting, you state ‘Ported Product’ in the ‘Product Details’ section, do not enter the top up product details here.
In the notes section please provide: -
The case reference of the existing NatWest Mortgage
The existing rate of the product to be ported
The amount and rate of any top up product (if applicable)
Applications have a 6 month porting window, as per the customers mortgage illustration
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.
Please note that a new business rate should be selected for any top up borrowing on porting cases in excess of £10,000
If a customer is within the last 6 months of an existing deal, based on the new mortgage application date, you can request to use new business products through your BDM and LiveTALK
For customers of the below brands who wish to port, the customer must contact the number below directly:
The One Account: contact TOA new business sales on to 03453 01 01 01.
First Active: contact First Active mortgage sales support team on 08453 011 301.
Ulster Bank: contact Ulster on 02890 276 431
We are investigating a solution that would allow a customer whose existing term takes them into retirement to port like for like via a broker in the future. Currently, where the customer is looking to do this and their existing term goes into retirement, they should contact us directly
Customers looking to port an old Metro mortgage, they can do this by calling us directly on: 0345 302 0190
If you have any questions regarding the Product Transfer process for former Metro Bank customers, please review these FAQs
Converting the mortgage from joint to sole names
The mortgage can be amended from joint names to sole name.
This would mean that an existing party to the mortgage is removed - and the remaining mortgage holder transfers the mortgage rate onto a new mortgage – we refer to this as porting.
We would require written consent from the party being removed before we can proceed.
This written consent must confirm that:
they are happy for the other party to port this mortgage product in their sole name
they won’t be porting the rate themselves
if an Early Redemption Charge (ERC) has been paid when the existing mortgage was redeemed, this will be fully refunded to the person porting the rate once the new mortgage completes.
The customer porting the mortgage rate must be aware that an ERC will be payable unless the repayment of the existing mortgage and completion of the new mortgage happen on the same day.
There should be six months of continuous employment, although this doesn't need to be with the same employer. In the event of a joint application where affordability is met based on the main applicants income only, there is no requirement for the joint party to meet the continuous employment requirements.
Applications can be considered from graduates who are in full time employment and completing a period of probation, as it is rare for permanent status not to be confirmed.
We offer a facility to enable you to assist existing NatWest mortgage customers to switch to a new NatWest mortgage rate when their current deal comes to an end.
Available for both residential and buy to let business for customers who are within their 6 calendar month roll off period, those on standard variable rate (SVR)and those with ‘track and switch’ functionality.
The service offers a free House Price Index (HPI) value to ensure that the most appropriate LTV deal is offered to customers.
The balance available to switch must meet a product minimum of £10,000 (for both residential and buy to let customers) . This Product Transfer service is not available to customers wanting to exit an existing deal ahead of the roll-off period, change the mortgage term or repayment type or those whose mortgage is in arrears.
Please be aware that if your customers mortgage has multiple sub accounts that need to switch on different dates, we will send out more than one variation agreement to be accepted. We will switch the sub account on the required start date and no sooner. This is to prevent the customer being charged a ERC.
For additional guidance on how to submit an Additional Borrowing application, please visit our dedicated page: Additional Borrowing
Please note, additional borrowing is only available as part of a product transfer through intermediaries. For standalone additional borrowing, the customer must contact us directly on 0345 302 0190 (Relay UK: 18001 0345 302 0190).
If a customer wants to pay their ERC to break a fixed rate this is not something a broker is able to assist with. They will have to speak to NatWest direct on 0345 302 0190 (Relay UK: 18001 0345 302 0190).
If you have any questions regarding the Product Transfer process for former Metro Bank customers, please review these FAQs.
If your customer does not pass the electronic ID verification as part of the full mortgage application then we will need 1 document from the Name Verification section and 1 document from Address Verification section sent in with your application. Please note you cannot use the same document for both name and address verification.
Full UK Driving Licence/UK Provisional Licence
Military ID Card
EU/EEA National ID Card
EU/EEA Driving Licence
Biometric Residence Permit
Bank Statement (NatWest bank statements cannot be used as proof of address for a NatWest mortgage application)/Utility bill/Council Tax bill
Mortgage statement/Local Council Tenancy Agreement
UK Full Driving Licence/UK Provisional Driving Licence
In all the examples below the valuer must confirm saleability and suitability for mortgage purposes, if they can then we can consider lending against the following:
No-fines concrete construction (exceptions apply, please check with LiveTALK)
Steel framed houses (exceptions apply, please check with LiveTALK).
Flats over or immediately alongside business premises
Freehold flats - where it is possible to enforce positive covenants. Before considering lending against this type of property, we rely on the valuer’s recommendations and the solicitor’s confirmation that the property title is good and marketable
Agricultural restrictions - the maximum LTV will usually be 50% but each case will be assessed on its own merits
Properties used for business - we can only lend if the property is primarily for residential use and the work area of the property is 20% of the total property area or less
Leasehold properties - there must be at least 30 years left on the lease at the end of the term (we may consider less for properties in central London). Properties with lease lengths below 80 years at application should be discussed with your BDM before submission
Flats (on any level) in multi-storey type properties are usually acceptable, subject to exceptions e.g. where the valuer identifies issues with the building and/or locality which are likely to adversely affect resale
Property types - unacceptable
Properties with a floor area of less than 30m2
Properties with a plot size in excess of 4 hectares/10 acres
Properties listed under the Housing Defects Act (valuers will advise us if the property falls within the Act)
Steel clad houses
System built concrete construction
Prefabricated/(pre)reinforced/poured or shuttered concrete construction
Easi-form construction (except by Laing from 1945 onwards)
Mundic block property
Properties built on contaminated land
Timber-framed property with cavity wall insulation unless installed during construction
Shared ownership properties
Working farms, smallholdings and crofts
Where the purchase of the property was completed within the last 6 months unless they meet our back to back criteria – Please see our 'back to back' section
One Bedroom properties in Northern Ireland cannot be considered unless the property is part of a purpose built apartment block located within the post code range BT1 to BT18. If they are within these postcodes a management company should be in existence
Right to buy (Properties in England, Scotland and Wales)
(Properties in England, Scotland and Wales)
· For right to buy properties, we will lend 100% of the discounted purchase price subject to a maximum of 90% of the open market value (subject to LTV max of current product range).
· The minimum loan is £10,000, or the product-specific minimum, whichever is greater.
· Further advances for non property related purposes are not allowed during any discount period.
· Applicants can raise additional funds for home improvements, the amount they can raise is determined by the discount period given by the council. For example, if a property is worth £100,000, and the client has been offered to purchase this property for £60,000, we will allow them to borrow £60,000 plus some additional money for home improvements. On a 5 year scheme this will be 1/5th of the £40,000 discount and on a 3 year scheme this will be 1/3rd of the £40,000 discount given. This is subject to credit score and affordability.
· Right to buy Scotland closed on 31st July 2016
· Right to buy Wales closed on 27th January 2019
(Properties in Northern Ireland)
· NIHE properties – we will consider lending up to 100% of the purchase price provided the loan to free market value does not exceed 80%.
· Private Housing Associations – we will consider lending up to a maximum of 90% of the purchase price.
We can consider Seafarers income if this is paid in an acceptable currency to NatWest and can be evidenced via payslips and, where tax is not paid at source, the most recent SA302 to confirm that the client is registered for UK tax.
The client must also have permanent right to reside in the UK, have settled or pre-settled status or Irish Citizenship AND must live in the UK when not at sea.
We allow search indemnity insurance arranged by a clients solicitor for England, Scotland, Wales and Northern Ireland, providing the search insurance adequately protects us and the solicitor is able to certify that the title is good and marketable.
The search indemnity policy will cover local authority searches rather than Land Registry searches. We would still expect solicitors to carry out Land Registry searches (this can be done online for £3).
We will accept personal searches, provided that the search agent has the adequate professional indemnity insurance and the solicitor can still give a clear Certificate of Title.
We can consider cases where the property has a 2nd charge, subject to a Deed of Postponement (DoP), to ensure we hold 1st legal charge.
In this instance the customer would be required to pay a registration fee for the DoP to Land Registry.
Before we issue the offer, we must receive consent from the customer to reach out to the 2nd charge lender to proceed with the DoP. The 2nd charge holder will need to consent that our charge will have priority over their charge. The documents need to be signed and posted to us.
Any fees charged by the second charge holder will be met by the customer.
In a case where a second charge is being redeemed before completion, a future dated redemption statement needs to be submitted for us to issue the offer.
Transcripts are only acceptable for Scottish residential property purchases and only where they are a re-type of the Home Report valuation. The home report valuation must have been carried out by a valuer on our panel and be less than three months old. We must instruct the transcript request. Transcripts instructed by any other party are not acceptable.
Transcripts will not be requested where the property has an estimated value of more than £1m. For buy-to-let purchases, a standard valuation will instead be instructed.
We lend on the Government-backed (Help to Buy England and Scottish LIFT Scheme) shared equity schemes. We require a minimum 5% deposit from the applicant and the minimum LTV must be 25%. 3% of the equity share will need to be factored into the affordability calculation as a monthly commitment. We do not currently offer a shared equity scheme remortgage product. The following eligibility criteria apply:
The applicant will be planning to live in the house and not rent it out i.e. it will be the main residence
The applicant cannot own any other property, in full or in part
The property must be in the UK
The applicant(s) must meet our affordability criteria
The applicant(s) must meet our underwriting criteria such as an acceptable valuation and being able to provide proof of income, etc.
The mortgage must be taken out on a capital and interest repayment basis
The scheme is available to existing homeowners and first-time buyers purchasing a property.
We will take an average of the last two years' net profits to assess affordability. For applicants who are self-employed on a partnership basis, we will take an average of their personal share of the net profit over the last two years.
For self-employed applicants where there has been a reduction in profits/income from the previous year to the most recent year, underwriters may use the most recent lower figure, rather than an average of the last two years.
We have a panel of solicitors for our fees assisted remortgage service. There is no charge to the customer for a standard remortgage loan below £2 million. All of our panel commit to charging the same scale of fees for any additional services which a customer may require. Please refer to our list of these fees for England & Wales and Scotland.
A standard variable rate (SVR) is a type of variable-rate mortgage. The SVR is a lender's default rate without any limited-term deals or discounts attached. A lender can raise or lower its SVR at any time. Standard variable rates tend to be influenced by changes in the level of the Bank of England's base rate. However, a lender may also decide to change its SVR while the base rate remains unchanged.
Repayment of student loans is dependent on receipt of a minimum income. They need only be included as a financial commitment to be taken into account for mortgage affordability if the applicant is already making repayments.
Our Track and Switch facility allows customers who are uncertain about fixing their rate right now to choose a Tracker mortgage and fix their mortgage rate later. Our Tracker products track the NatWest Base rate.
If it’s right for your customer, they can take any Tracker mortgage now. NatWest Tracker mortgages are variable rate products which track the National Westminster Bank Plc base rate. You’ll get paid your standard procurement fee for any new or existing business tracker cases.
Then, if they wish to switch to a Fixed Rate mortgage, you can use our Product Transfer system to switch them easily onto the Fixed Rate they’d like. They can do this once their tracker mortgage has drawn down, they won’t be re-credit scored and you will receive a standard Product Transfer procuration fee.
The following forms of income are classed as unacceptable for a mortgage application:
Bereavement allowance: paid to widows, widowers or surviving civil partners for a maximum of 52 weeks. Not acceptable as it's paid to reimburse personal expenditure.
Employee benefit trusts (EBT): this is a tax mitigation scheme used in conjunction with employment income.
Expenses: not acceptable as they're paid to reimburse personal expenditure.
Housing Benefit: payment of full or partial contribution to claimant’s rent. The full rental figure i.e. rent amount without receipt of the benefit, must be listed in the applicant’s commitments. Housing benefit is not acceptable for mortgage products. This has been incorporated into Universal Credit.
Income Support: payment for people on low incomes, working less than 16 hours a week and who have not signed on as unemployed. Can be accepted as a main allowance only if paid in conjunction with Disability Living Allowance. This has been incorporated into Universal Credit.
Job Seeker's Allowance: paid to people who are unemployed or working 16 hours or less per week. This has been incorporated into Universal Credit (on a limited basis).
Stipend: a form of salary paid for internship/apprenticeship. Only acceptable by exception, at the discretion of the underwriter, if they are comfortable with the evidence seen of the long-term nature of the income.
Third Party Income: earned by a spouse, partner, parent who are not included on the application.
Universal Credit: only certain elements of the Universal Credit are deemed acceptable as forms of income. Please see below for details.
The Standard Allowance element can only be included where it can be evidenced from the award letter that the customer is employed i.e. the award letter details the take-home pay. This will confirm that the customer is in receipt of working tax credits and employment support allowance and not unemployment benefits. If the take-home pay shows as £0 on the award letter, Universal Credit cannot be used for mortgage purposes.
In addition: Any housing element should be deducted from monthly payment figure and NOT included for mortgage affordability purposes. The customer must provide a breakdown of their Universal Credit via their award letter or online statement (must include full breakdown of award). Circumstances are assessed each month and the amount paid may change.
A free valuation is available for purchases where the lower of the purchase price or value is less than or equal to £3m. The free valuation is applicable per property, rather than per application.
Where a free valuation applies, we will complete our own checks to make sure a property meets our lending criteria. This may not be a physical inspection of the property. We may use an Automated Valuation Model (AVM), or do the valuation on a desktop. This check is FOR THE BANK’S USE ONLY. Your client will not be charged for this.
We highly recommend that your client considers carrying out their own checks to satisfy themselves of the property value and condition before completing the purchase.
Where a valuation fee is applicable, we will provide customers with a full valuation fee refund if their applications are declined on the grounds of affordability or credit scoring or where we cannot lend the full amount requested due to affordability issues (unless they have requested to instruct a valuation on own risk as per below).
For loans where the purchase price is above £3,000,000 our processing team will contact you prior to the valuation instruction and we adhere to the following process:
· Purchases – where the valuation fee is applicable, the customer is given the choice between whether the valuation is instructed on Day 2 at the clients own risk following receipt of application or wait until the case is fully agreed by an underwriter (Please note that if the customer does proceed and the valuation is instructed at clients own risk, they could lose the fee if the valuation is carried out but they withdraw.)
· Purchases – Please consult our Service Levels page for current processing times (bank is covering cost)
A valuation will always be obtained via a Panel Surveyor instructed by us.
The applicant may need to pay for a valuation report. Where a fee is payable, it is based on the purchase price, or estimated value of the property.
Remortgage applications - the fees-assisted package applies to loans of up to £2 million. This includes a free valuation regardless of the loan amount and legals for loans of up to and including £2million for a standard remortgage. There may be instances where a customer may not qualify for this. Please refer to LiveTALK or your BDM.
A valuation will always be obtained using a panel surveyor instructed by us (NatWest Group). The customer may need to pay for a valuation report. This fee is based on the purchase price, or estimated value of the property. The following tables give a guide.
We have removed all standard valuation fees on remortgage products up to a property value of £10 million. The free valuation purchase limit will remain at £3 million.
Up to £100,000
£100,001 - £250,000
£250,001 - £500,000
£500,001 - £700,000
£700,001 - £850,000
£850,001 - £1 million
£1,000,001 - £1.5 million
£1,500,001 - £2.5 million
£2,500,001 - £3 million
£3,000,001 - £3.5 million
£3,500,001 - £4 million
£4,000,001 - £4.5 million
£4,500,001 - £5 million
£5,000,001 - £5.5 million
£5,500,001 - £6 million
£6,000,001 - £6.5 million
£6,500,001 - £7 million
£7,000,001 - £.7.5 million
£7,500,001 - £8 million
£8,000,001 - £8.5 million
£8,500,001 - £9 million
£9,000,001 - £9.5 million
£9,500,001 - £10 million
For any properties valued over £10m, valuations are available, upon request via LGSS.
The payment will be taken from the card details supplied on the application form. If for any reason, payment cannot be processed from these details the customer or broker will have to call 0345 600 0205 and make the payment.
Adding fees to the loan
Product fees are the only fees which can be added to the advance.
This fee is paid when the mortgage is arranged and is refundable until completion.
Once your client's mortgage is set up, they may need to pay one-off fees for other services. These include changing the date of direct debit collection, duplicate statements, adding or removing someone from their title deeds.
If you'd like a copy of the individual fees and charges leaflet, contact us.
Please note that if an applicant is heavily reliant on these benefits (the ratio of benefits to main income) then please discuss these with our BDA team but be aware that the final decision is subject to underwriting.
Please note the applicant(s) must be entitled to the benefit- e.g. the names on the award letter must match the applicants.