Nat West mortgage lending criteria

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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.