Nat West mortgage lending criteria
We have not verified the information with the lender. You should not rely on this information. If you have an area of concern then please ask us.
Nat West mortgage lending criteria
Mortgage Advances
Up to £10,000,000
Notes
Illustration Type = ESIS.
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.
Porting Cases - For Existing Customer’s moving home and porting a current deal this product can be used to top up from
a value of 10k
Mortgage Maximum Terms
Residential - Capital & Interest Repayment increases to a maximum – 40 years
Residential - Interest Only Repayment and Mixed Repayment remains the same at:
-Maximum - 35 years for loans < or = to £500,000
-Maximum - 30 years for loans >£500,000
The applicant must be 18 or over.
Maximum Age of Borrowers (at end of term)
Residential Capital & Interest Repayment increases to 75 years old
Residential Interest Only Repayment & Mixed Repayment remains the same at 70 years old
The property must be wholly owned by the applicant(s) - The lender currently does not accept applications from shared
ownership schemes.
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.
The property must be wholly owned by the applicant(s) - The lender currently does not accept applications from shared
ownership schemes.
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 accept sale of the secured property
as a repayment vehicle
A free valuation is available for purchases where the lower of the purchase price or value is less than or equal to £3m.
Only the first standard valuation is fee free.
One free valuation per property
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 the
Early Repayment Charges section for any 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.
Capital Rest Period : Daily
Repayment Types
Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) Refer
With Profits 75% LTV
Unit Linked 75% LTV
ISA 75% LTV
Split Repayment 75% LTV
Fees
Arrangement : £ varies Can be Added
Booking : None
Early Repayment Charges
varies, 10% capital repayments
allowed per year without penalty
Higher Lending
None
Valuation
Basic:
Free
Homebuyers:
up to £100,000 - £258
up to £250,000 - £367
up to £500,000 - £511
up to £700,000 - £702
up to £850,000 - £814
up to £1,000,000 - £927
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.
Lender Conveyancing Fee - £117.50 Payable on completion. The Lender Conveyancing Fee is the cost of legal work
carried out for us as the lender and not the overall solicitor's fees for the whole transaction. The figure shown here is an
estimate based on the average fee charged. Please check the actual charges with your chosen solicitor as they may vary
depending on the property.
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 Yes
Studio Flat Yes
Flying Freehold Yes
Thatched Yes
Timber Framed Yes
Concrete Refer
Agricultural Tie Refer
Flat Over 4 Storeys Yes
Listed Building Yes
Right to Buy
Max Discount% 100
Max Market Value%
New Build acceptable. New Builds Max LTV 75% for Flats and 85% for Houses.
Properties we will not consider:
- Properties with a floor area of less than 30m².
- Properties with a plot size in excess of 4 hectares / 10 acres
Accepted Locations : England, Scotland, Wales, N Ireland
Requirements
Bank Statements 3 months
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References No
Insurance
Buildings Conditional
Conditions
Min Loan £25,000
Max Loan £10,000,000
Max Portfolio of BTL Loans £10,000,000
Min Age 18 years
Max Age 75 years
Min Term 3 years
Max Term 40 years
Please refer to the Packaging section of intermediary.natwest.com for full details of supporting documents required.
To see how much your client may be able to borrow, please view the lenders mortgage affordability calculator also
available at intermediary.natwest.com
For AIP's Natwest will perform a soft credit search. Once these progress to FMA a hard footprint will be produced.
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.
Interest Only and Part Interest Only/Part Repayment applications limited to 75% LTV.
The Lender can currently only remortgage over 80% on a like for like basis for the existing mortgage balance. No other
purpose for capital raising is permitted. For remortgages up to 80% then previous criteria still applies and capital raising
to 80% is acceptable
For the mortgage to be eligible for the new Mortgage Guarantee scheme, it will need to:
be a residential mortgage, not a second home and not buy-to-let
not be a new build property - which is any property built, first occupied in its current state, or significantly modernised,
refurbished or altered within the last 2 years
be taken out by an individual or individuals rather than an incorporated company
have a loan-to-value of between 90.01 per cent and 95 per cent
pass NatWest standard risk assessments e.g. affordability and credit checks.
Purchase cases only – Free Valuation eligibility threshold increase
For purchase applications, the free valuation threshold will increase to £3m (currently £2m).
This is to be across all Purchase ranges where product includes a free valuation.
Standard Valuation Fees Scale Change
Standard Valuations costs for Purchase/Additional Borrowing/Switcher (where valuation fee applicable) to change to the
following:
Property Value is less than or equal to £3m – Standard valuation cost to be £102 + £75 Admin fee (Total £177)
Property value is between £3,000,001 up to £10m – Standard valuation cost to be £1380 + £75 Admin fee (Total £1455)
Purchase cases only - Free Valuation rules
Rules for free valuation will now change to one free valuation per property (used to be per customer).
Building Insurance to cover full cost of rebuilding your property.
Foreign Citizens Refer
Ex-Patriates Not Accepted
Income
Based on Income > 0
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 Yes
Outgoings
The lender will assess all applications on an affordability basis . To see how much your client may be able to borrow,
please view the mortgage affordability calculator at intermediary.natwest.com
The minimum income requirement from at least one applicant for a residential Interest Only mortgage is £75,000.
Self Employed income for customers who have received the Self Employed Income Support Scheme (SEISS):
We will accept applications from self-employed customers who have previously received the SEISS grant providing this
is not within the 3 months preceding the application
We will use the average of the last 2 years or the most recent years income, whichever is the lower. This figure is taken
from the Net Profit before tax has been paid.
We will assess the business’ capability to sustain the level of income declared using the last 3 months business bank
statements
For sole traders where a personal account is used instead of a business account , you must provide a memo to NatWest
to explain that all business activity is conducted through their personal account.
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 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 Add 100% to income before multiply
Investment Income Add 100% to income before multiply
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 Add 100% to income before multiply
Car Allowance Add 100% to income before multiply
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.