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Mortgage Lending criteria

Mortgage Lending Criteria - Nat West

Nat West


Notes: The following information is general and may not apply to your mortgage. We have not verified this information with the lender.

Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

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Advances


Advances
Upto 1,500,000 (Remortgage only LTV 75)

Notes
Mortgage is Portable
If you buy a new property while an early repayment charge (ERC) is payable on one or more of the products which make up this mortgage, you may port your existing mortgage product(s) to your new property subject to the following terms;

Your new application must meet our lending criteria current at the time you move. We will carry out credit checks on you, and will require a valuation of the new property, and will decline to port if you do not meet our criteria in force at that time. This may mean that we decline to lend at all on the new property, or may allow you to port less than the amount you have applied for.

You may not port to a flexible mortgage type such as Offset or One Account mortgages.
The customer named in the existing mortgage and the ported mortgage must be the same (this means that in the case of a joint mortgage all of you must also be named on the new mortgage and you cannot port separately), and the mortgage product must be the same, in terms of interest rate and product end date.

The mortgage must be ported to a new property that you are purchasing; you cannot port to property you already own.

We will refund your ERC if you meet the above terms, provided that you complete your new mortgage within 3 months of the date of redemption of the current mortgage. (e.g. if this mortgage redeems on 25th January, you new mortgage must complete by or on 24th April. If 24th April falls on a non-business day, the new mortgage must complete by or on the last business day before that date).

If you port the full balance on which an ERC is payable, we will make a full refund of the ERC. If you port less than the full balance outstanding we will refund only the ERC payable on the amount transferred.

Where no ERC is payable, you may apply to us for a new mortgage when moving house. Any new application will be subject to our lending criteria current at the time you move, and will require credit checks and a valuation of the new property.

The applicant must be 18 or over.

The maximum age of applicants at the end of the term is 70 years subject to serviceability beyond normal retirement age.

The property must be in England, Scotland or Wales.

The property must be wholly owned by the applicant(s) - The lender currently does not accept applications from shared ownership schemes.

No more than four parties can be named for residential mortgage (where there are more than two applicants you must complete a paper application form).

All new residential mortgages must be submitted on a capital and interest basis.

Existing NatWest mortgage customers moving home can retain the interest only element of their mortgage provided they can offer proof of a suitable repayment vehicle

Any additional borrowing requirement when moving home must be taken on a capital and interest basis. Such residential applications including an interest only element must be submitted on paper using the blank application form found under the ‘Literature’ section on

The following conditions will apply:

Loan to value must not exceed 75%.
Residential interest only mortgages must be done on an advised sale basis.
There must be a suitable repayment vehicle in place for the term of the mortgage. Standard repayment vehicles that are acceptable are endowments, pensions and stocks and shares ISAs/PEPs. We do not accept sale of the secured property as a repayment vehicle

For guarantor mortgages applicant(s) must be able to pay for the loan with their own income. However, Purchase lending applicants with low incomes that will increase significantly over the next 5 years can use a guarantor (e.g. parents).


If remortgage package - No valuation or legal fees if using the Bank's nominated valuer and solicitor.

You can make overpayments on this mortgage.

You can overpay a maximum of 10% 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 this 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 10% of the outstanding balance of each part.

An Early Repayment Charge will be incurred on any overpayment that exceeds the annual 10% limit. Please refer to Section 10 for information on Early Repayment Charges that would be incurred if any overpayment exceeds the annual 10% 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. Your request must be received by us 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 Payment Day.

Regular overpayment amounts will be collected with the 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.

All applications must be submitted on a capital and interest repayment basis only.

Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment No
PEP No
Pension No
Interest only (no RV) No
With Profits No
Unit Linked No
ISA No
Split Repayment No

Fees


Arrangement : varies
Booking : None

Early Repayment Charges
varies

Higher Lending
None

Valuation
Basic:
upto 100,000 - 118
upto 250,000 - 167
upto 500,000 - 271
upto 750,000 - 442
upto 1,000,000 - 550
upto 1,500,000 - 1185
upto 2,000,000 - 1480
upto 2,500,000 - 1770
upto 3,000,000 - 2070
upto 3,500,000 - 2650
upto 4,000,000 - 2960
upto 4,500,000 - 3260
upto 5,000,000 - 3510
upto 5,500,000 - 3660
upto 6,000,000 - 3810
upto 6,500,000 - 4110
upto 7,000,000 - 4410
upto 7,500,000 - 4710
upto 8,000,000 - 5010
upto 8,500,000 - 5310
upto 9,000,000 - 5610
upto 9,500,000 - 5910
upto 10,000,000 - 6210


Homebuyers:
upto 100,000 - 253
upto 250,000 - 361
upto 500,000 - 505
upto 750,000 - 685
upto 1,000,000 - 860
Special:
upto 100,000 - 505
upto 250,000 - 635
upto 500,000 - 793
upto 750,000 - 1094
upto 1,000,000 - 1369

A withdrawal fee of 150 will be payable once a full Mortgage Offer has been issued if the customer fails to complete. The fee applies to all mortgage customers who are purchasing a property, remortgaging their current property or porting their existing mortgage to a new property.

Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.
Arrangement Fee - 0.00 Payable upfront. Payable on application and is refundable
Remittance Fee - 30.00 Payable on completion. This is an administration fee when the loan proceeds are issued to the solicitor and is deducted from the amount sent.

Acceptable Property Types



Freehold Flat Yes
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Refer
Studio Flat Yes
Flying Freehold Yes
Thatched Refer
Timber Framed Yes
Concrete Refer
Agricultural Tie Refer
Flat Over 4 Storeys Refer
Listed Building Refer

Max Discount% 100
Max Market Value%
New Build acceptable. New Builds Max LTV 75% for Flats and 80% for Houses.
New Builds Max LTV 75% for Flats and 80% for Houses.

Accepted Locations : England, Scotland, Wales

Requirements


Bank Statements 3 months
At Least 3 Months Pay Slips No
P60 No
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References No

Insurance
Buildings Conditional

Conditions On Loan

Min Loan /Rmg 25,000
Max Loan /Rmg 1,500,000
Max Portfolio of BTL Loans 2,500,000
Min Age 18 years
Max Age 70 years
Min Term 3 years
Max Term 35 years


Once you have completed your application, you will receive a scoring decision, which will be either an 'Accept', 'Refer' or 'Decline' message. Any policy warnings will also be displayed. As part of the scoring process, we will attempt to electronically verify and validate the identity of your client.

If successful you will receive a message to confirm that we will not require any further proof of identity for your client. Where we have been unable to verify their identity, you will be asked to send us certified copies of their identity documents you will already have on your file. Either way, you will know at the point of sale what will be required.

Building Insurance to cover full cost of rebuilding your property.
Foreign Citizens Refer
Ex-Patriates Accepted

Income



Based on Income > 0
Guide 4.9 + 0 or 4.9 joint < 95% LTV

Min months in current position 1
Min months in continuous service 6
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit No

Outgoings
The lender will assess all applications on an affordability basis .

Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Refer to lender
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education NOT Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 100% to income before multiply
Other Income - Irregular No
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply

Remortgage



Capital Raising 75%
Home Improvements 75%
Debt Consolidation 75%
School Fees 75%
Holidays/Cars 75%
Buy Other Property 75%
Business Purposes Not accepted
Divorce Settlement 75%
Unencumbered 75%

The lender will assess all applications on an affordability basis .


Adverse Credit


CCJs : Refer to lender
Defaults : Refer to lender
Arrears : Refer to lender
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable

- For details what Lender will consider in case of financial difficulty PLEASE REFER TO LENDER
- The general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including :
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.