A- Z Lending Criteria

The only acceptable agricultural tie is where the applicant must be employed in an agriculture related job and the primary source of income must not be related to the secured property. This is subject to a maximum LTV of 50%. Please note, the maximum plot size normally acceptable is 4 hectares/10 acres and there should be no evidence of tenancy or commercial activity.

The maximum number of applicants is two.

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. 

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. 

Applicants must be resident in the UK. Applications will still be considered from serving members of HM Armed Forces, UK Diplomats or UK Consular staff, following standard residential mortgage criteria. HM Armed Forces consist of the Royal Navy, Royal Marines, British Army and Royal Air Force.

·         The maximum amount of acceptable incentive is 15% of the purchase price of the property. If however the property is a help to buy purchase the maximum incentive allowable is 5% as per the scheme rules.

·         The purchase price will not be adjusted for incentives, unless the total amount of incentives exceeds 5% of the purchase price. Incentives greater than 5% will be deducted and lending based on the reduced purchase price (unless the property valuation is lower) The example below explains this for a New Build residential house:

– Purchase price of the property: £120,000

– Incentives total: £8,000

– Incentives to be deducted from purchase price: £8,000 - £6,000 (5% of purchase price) = £2,000

– Reduced purchase price: £120,000 - £2,000 = £118,000

·         To comply with the requirements of the Help to Buy schemes, customers must still fund a 5% deposit themselves

·         Lending is based on the lower of the purchase price of the property or the property valuation

·         Portable and proportionate incentives, such as carpets and curtains, along with other financial incentives such as support with up-front costs such as Stamp Duty, legal fees or cashback or enhanced part exchange terms can be accepted in the 5% allowance

·         Non-standard items such as an upgraded kitchen or integrated appliances can be accepted as an incentive but do not need to be included in the 5% allowance. It will be the responsibility of the valuer to decide which incentives are included in the calculation 

The maximum properties we can accept for a Portfolio Landlord is 10 BTL or CTL properties mortgaged or unencumbered

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’.

Buy to Let Calculators

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

Minimum income

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. 

EPCs

Before submitting an application please check the property has a valid EPC of E or above on the EPC register here:

England, Wales and Northern Ireland register

Scotland register

Without this a valuation cannot be provided and we will be unable to proceed with the application.

Minimum loan size

£25,000

Minimum purchase price

£50,000

Selective licensing schemes

We can consider selective licencing schemes for private rented properties as long as there are no significant issues highlighted by the valuer (and no HMO).

For more in-depth guidance on Buy to Let policy, please visit our Buy to Let Hub

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.

• There is no formal evidence which is required for childcare costs, however if there is a difference between what is on the evidence provided as part of the application and the declared costs, this will be challenged/discussed to ensure the correct figure is used for the customer
• As part of the affordability discussion, you will need to clarify with the customer whether it’s certain or likely that childcare costs will change over the next 5 years. The highest figure should be used over the 5 year period
• In some circumstances childcare costs may be unknown, for example if 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 a number of situations where childcare cost should not be captured in the affordability calculations. These include:

• Where customers are using free childcare e.g. a relative to look after their child.
• Where the childcare costs are stopping 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

We can consider accepting up to 100% of the commission an applicant receives.  Evidenced by the last 3 months consecutive payslips showing commission payments. The monthly income should correlate to YTD salary

For details of committed expenditure please refer to the ‘Financial Commitments’ section.

The bank may be prepared to allow residential mortgage customers to rent out their current property as a buy-to-let property under a consent-to-let arrangement under the following circumstances (this is not an exhaustive list):

Customer is unable to sell their existing home before buying a new property. 

Customer is currently in or moving to tied accommodation linked to their employment (e.g. boarding school teacher, vicar/minster, estate worker, army barracks etc.) The customer may not take occupation of the property until their current employment ceases which may be many years in the future.

Customer is a member of the Armed Forces currently serving elsewhere in the UK or overseas and property has previously been used as or is intended to be their main residence in the future (we will require confirmation via a Service Number or other suitable identification).

Customers must have had their mortgage with us for a period of no less than 6 months (unless they are in Tied Accommodation or in the Armed Forces) – 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.

There are no fees payable for UBNI customers.

Should your customer wish to arrange this, please ask them to call: 0345 302 0190

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

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.

Please see Back to Back

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, and a Leaseholder Deed of Certificate can be provided (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, or a Developer Remediation Scheme and the building must be 11 meters or higher.

Leaseholder Deed of Certificate will need to be provided.

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.

Broker services are in place to assist existing customers in the following circumstances:

·         An existing NatWest Mortgage customer moving home (see Porting)

·         An existing NatWest Mortgage customer changing rate at the end of their deal (see Product Transfer)

·         An existing RBS Mortgage customer remortgaging to NatWest (instead of a product transfer,  by exception )

·         An existing Ulster Bank NI customer remortgaging from UBNI to NatWest

If your customer requires standalone further borrowing, change of term/repayment type customers should contact us direct on: 0345 302 0190 (Relay UK: 18001 0345 302 0190).

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.

(Also see 'Working abroad').

For all customer applications that do not have permanent “right to reside”, the maximum LTV is restricted to 75% on a Capital & Interest repayment basis only. The customer is 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. 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 at the time of application. We cannot process a joint application where one customer has indefinite leave to remain and the other has a visa which has less than 6 months remaining. We will need to see both pages of the VISA to confirm Name, DOB and Validity..

For joint applications, where only one party has permanent right to reside, we can consider up to 95% LTV

The treatment of EU, EEA or Swiss citizen customers with ‘Pre-Settled’ status is now aligned with customers who receive ‘Settled’ status.

• EU, EEA or Swiss citizens who apply to the EU Settlement Scheme will receive either ‘Settled’ or ‘Pre-Settled’ status
• EU, EEA or Swiss citizen 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. As part of our packaging requirements, the EU settlement status letter will need to be provided
• 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

Please read our FAQs for more information:

Foreign Nationals FAQs.

• 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 do not currently support mortgages backed by a guarantor.

Help to Buy: shared equity (Purchase)

Help to Buy shared equity mortgages are open to all intermediaries and available for new build properties only. Please note the following information:

• Property must be in England.
• Maximum property value is capped by region

• All applicants must be first time buyers
• Applicants need a minimum 5% deposit.
• Government will loan up to 20% of property value.
• Applicant's mortgage must be for a minimum of 25% of the property value
• Part Exchanges not permitted
• It must be the primary residential and only property.
• We offer specific 75% LTV mortgages to support this scheme.
• Need to apply for eligibility through a HomeBuy Agent in region of desired property.
• 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 cannot lend if the applicant isn’t a UK National or doesn’t have permanent right to reside

Help to Buy: London

The customer must have a minimum deposit of 5% and the Government will provide an equity loan of up to 20% of the property value.  In specific London boroughs the Government may provide an equity loan of up to 40%. The equity loan must be repaid by the end of the mortgage term or upon the sale of the property, whichever comes first. The customer must take a mortgage of at least 25% of the value of the property they are purchasing.

Help to Buy: shared equity (Remortgage)

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.

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.

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.

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.

For more information, please consult our Self Employed Hub

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)
• Post Offices. 

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’)

·         Credit Card

·         Store Card

·         Hire Purchase

·         Personal Contract Purchase (PCP)

·         Unsecured Loan

·         Secured Loan

·         Student Loan

• A variation of allowances can be received by customers to compensate for the location of their work e.g. Town Allowance, High Cost Area Allowance, Area Allowance etc
• Consideration should be given to whether the customer is relocating as part of the application, and whether the income will continue

This should be evidenced in line with Long Term Large Town allowance requirements on the Income & Packaging Guide.

As of 22^nd December 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 Prisoners are a group of customers identified by the FCA, who, following a Mortgage Market Review, have been unable to switch to a better mortgage deal with their existing or to a new lender.

Click here for further information on FCA Mortgage Prisoners
             

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.                                                    

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.

We can consider 100% of regular overtime evidenced by the last 3 months consecutive payslips. Monthly income should correlate to YTD salary.

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.

We lend to customers in England, Wales, Scotland, Northern Ireland and the Isles of Scilly.

Property types - acceptable 

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
• Multi-ownership properties
• 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

The following methods are acceptable: capital and interest (C&I), interest only (IO) and mixed.

We no longer accept residential lending into retirement applications. If a customer is wanting to take out a residential mortgage product with NatWest they will need to reduce their term to within their intended retirement age.

Where a customer is already retired and is able to evidence their income we will allow them to borrow during retirement.

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.

We will no longer allow customers to take any additional borrowing where the additional borrowing term extends into retirement.

For Capital and Interest loans the maximum age at the end of the term is 75 (or retirement age, if that precedes this) and the maximum term is 40 years.

For Interest Only and Mixed loans the maximum age at the end of the term is 70 (or retirement age, if that precedes this) and the maximum term is 35 years.

All of the above requirements apply equally to employed and self-employed applicants.

Portfolio Landlord/First Time buyer:

• We will not allow any new application to go past the customer’s retirement age

Small Landlord/Remo Like for Like:

• The application can go past the customer’s retirement age
• The application is based on ICR rather than personal income, therefore no evidence of pension or retirement income is required regardless of how far away retirement is

The max age for all applications is 80

For more information, please consult our Buy to Let Hub

(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.

To discuss the remortgaging opportunities between RBS to NatWest the customer will need to speak with our Direct mortgage team on: 0345 302 0190.

We do not currently support self-build mortgages.  

Self-build Remortgage

We are unable to support customers seeking to remortgage a self build property completed in the last 2 years. Customers can continue to remortgage to older self build properties.

• Please refer to 'Income Requirements and Packaging' on our Self Employed Hub
• Self Employed Hub
• Please also consult our Self Employed guidance on our Packaging Guide
• Packaging Guide

• 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 do not lend against Shared Ownership properties where the customer does not own 100% of the property or will not own 100% of the property on completion of the mortgage. 

A variation of allowances can be received by customers to compensate for additional responsibilities / working hours

·         Common examples may include but not limited to: Additional Duty Hours, Call Out, Danger Allowance, Offshore Allowance, On Call, Sleepover Allowance, Standby, Unsocial Hours, WTD etc

·         Working from Home Allowance – Not Acceptable.

This should be evidenced in line with Shift Allowance requirements in the Income & Packaging Guide

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.

We can consider stipend income where the long term nature of the income can be evidenced. Please discuss with this with us.

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.  

Find out more about Track and Switch

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 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. 

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.

Product fee

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.

Previously, we required applicants to be employed full-time by a multinational company and we needed to understand where their company’s head office was based. This no longer applies. 

Self employed income can be considered where their company is based in the UK and the Republic of Ireland (including Partnerships/Directorships).

Assuming all other criteria is met, it is not a requirement that the applicant pays their income tax in the UK.

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.

Acceptable - We may consider applications from people who:

• work away for a number of weeks at a time but return to the UK when they are not working
• work away during the normal working week and return to the UK at weekends 

This will always be subject to an underwriter’s discretion.

Not acceptable - We will not consider applications from people who:

• work abroad and only return to the UK for holidays
• are on secondments living permanently abroad for a short period
• have bought a property abroad to live in

• We can accept up to 100% of Working Tax Credits, Child Tax Credits and Child Benefit. Please note that if your customer is heavily reliant on these benefits (the ratio of benefits to main income) then please discuss this with your BDM and be aware that the final decision remains with the underwriter. The age of an applicant's children may be a factor so we recommend sending in the awards letter with the application packaging. If the applicant earns more than £50,000, we will not include Child Benefit.