A-Z criteria

We consult multiple credit reference agencies to look at credit and bank account conduct.

We will not consider applications from individuals who have declared Insolvent in the past 6 years. Insolvency includes:

• Bankruptcy or Sequestration
• Individual Involuntary Arrangement (IVA) or Protected Trust Deeds
• Debt Relief Orders or Minimal Asset Process

Alternative adverse history may be considered subject to bank account conduct and underwriting.

Applicants must be at least 18 years old at the time of application. Maximum age will be based on the oldest applicant.

Residential

• For Capital and Interest loans the maximum age at the end of the term is 75 (or intended retirement age, whichever is sooner).

See Lending into retirement - residential

Buy to Let

• For Small Landlords the maximum age at the end of the term is 80.
  
• For portfolio landlords and/or customers who are non owner occupiers, the maximum age is retirement age or 80 (whichever is sooner).

See Lending into retirement - Buy to Let

Please see Terms for more information on this.

The maximum number of applicants is two.

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.

Where the customer has any background properties that they let out, you need to tell us about this on the application. Please key the full property details including any unencumbered properties in the 'Other existing mortgages/properties' section of the application.

Using surplus rental income for affordability is subject to bank acceptance.

Our underwriter reserves the right to ask for supporting documentation to validate what has been keyed on the application.

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 or discounted rate was ported to a new property but is now expiring/has 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 for example mortgage offer or 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.

We can accept bank statements providing:

• All of your customers details (full name, address, bank details) are clearly visible and match the details on your application.
• It is the customers full statement and is not filtered (either postal statement or online banking download. The online statements do not have to be certified by the issuing bank)
• You supply the full statements for the months we've requested.
• Screenshots cannot be accepted, please upload the original document.
• The image is clear and good quality.

For acceptable and unacceptable documents, please see Certification of Documents. 

We accept a range of benefits up to 100%.

For further guidance please contact us to discuss.

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Monthly regular bonus

We can consider 100% of regular bonus evidenced by the last 3 months consecutive payslips. Monthly income should correlate to YTD salary. Where this is paid weekly the latest 13 payslips will be required.

Quarterly bonus

We can consider 100% of quarterly bonus evidenced by the latest 4 Payslips showing the bonus payment for each quarter.

Annual / Bi-annual bonus

Evidenced by 2 payslips where annual or 4 payslips where bi-annual.

For discretionary bonuses we will consider an average of the last 2 years' payments (cash element only) and use 50% of it in our affordability calculation. When keying please key 100% of the amount received and we will use 50% of this. Please note that where the latest years' bonus was lower the underwriter will use 50% of the most recent year's bonus.

For guaranteed bonuses we will consider an average of the last 2 years' payments (cash element only) and use 100% of it in our affordability calculation. Please note that where the latest years' bonus was lower the underwriter will use 100% of the most recent year's bonus. We will require the contract to confirm there is no stipulations on the bonus being paid.

If you require further information, please contact us.

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We accept a range of builders’ incentives.

If a building incentives applies, please contact us to discuss further.

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We can support the following customers with Buy to Let mortgages:

• Small and Portfolio landlord mortgages
• First-time Buyers and Non-Owner Occupiers

Carer's Allowance is paid to people aged 16 or over spending at least 35 hours per week caring for someone with substantial caring needs. We accept 100% of a Carer’s Allowance.

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.

Acceptable documents

For Income/Expenditure:

• 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 of the document must be:

• taken from above the document
• free of distortion/effects
• well-lit in natural light (not taken with a flash)
• easy to read throughout with clear text and numbers
  
• fully visible and not  cropped or edited
• in PDF, PNG or JPG format

Each photo must contain one document/page only.

Unacceptable documents

• Screenshots from mobile/tablet/PC/laptop etc
• Photographs of a screen
• Manual documents (e.g. Excel spreadsheets instead of bank statements etc…)
• Taken at an angle
• Visible distortions or flash effects
• Very dark
• Unclear/blurry text and numbers
• Difficult to read
• Parts of document missing/cannot be read
• Cropped or edited pictures
• Any other file format
• Multiple documents/pages in each photo

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 the change of property form. You will also need to provide up to date packaging. The case will be reassessed and a fresh credit search maybe undertaken at the time of requesting the change.

If the application was submitted over 6 months ago then a new application is required.

Visit the useful forms section

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 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 £60,000 - Child Benefit must not be included.

Please note the customer(s) named on the award statement must match the application.

Other credit definitions

• Working Tax Credits
• Universal Credit

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 which would be subject to validation.

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.

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, where confirmation of remediation is not available through Government Remediation data or an EWS1/FRAEW is not already available for a building, the valuer may request an EWS1 form or FRAEW (Fire Risk Assessment of External Walls). 

All valuations remain subject to valuer’s comments.

If you require further information, please contact us.

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If the customer intends to run a business from the property, we can provide a mortgage only if the property is being used for residential use and can be readily restored in its entirety to owner occupation. The work area of the property must be no greater than 20% of the total property area, running a business from an office or room in their home.

Typical examples of these customers might be architects, accountants, chiropractors, physiotherapists, etc.

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. 

Purpose Built Live/work properties

Purpose built or converted properties with a registered Live/Work title are not acceptable, as the title restrictions on this type of property can affect future sale.

Debt consolidation is only available on Buy to Live mortgages.

Debt consolidation is where a customer wishes to clear existing debts as part of a new business or additional borrowing application.

The maximum LTV that we offer for Debt Consolidation is 80%.

The following outlines what we do and do not classify as debt consolidation:

Mortgage debt consolidation

• Unsecured loans / Hire purchase agreements
• Credit cards / Store cards / Catalogue accounts
• Overdrafts
• Student loan

Not mortgage debt consolidation

• Secured borrowing on any property / second change
• Tax bills
• Car balloon payment to purchase the vehicle
• Borrowing from a family member where there is no agreement
• Shared equity / Ownership buyouts (staircasing)

Where funds are being raised on a remortgage to NatWest to repay and consolidate existing debt, you do not need to include this debt as a commitment on the affordability calculator. We will disregard these commitments from affordability in this scenario. Please ensure you still include these debts in the ‘Expenditure’ section of the AIP and Full Application and then select the option to confirm that debts will be repaid.

A dependant is any person who relies on the customer financially for things like money, clothes or food, whether living at the property or not. This includes financially dependent partners not named on the mortgage, children under 18, those in higher education, and financially dependent elderly relatives.

Where the customer pays maintenance for a child, they should not be listed as a dependant.

If your customer is expecting a child, e.g. currently pregnant or has approval to adopt, then this extra dependant must be included when assessing affordability.

We can't 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 (ERC) 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.

The year runs from the date the mortgage was taken out (or your customer's current product) and the 20% includes all sub accounts and is specific to each of these that makes up the mortgage.

If customers reduce their ported balance then a partial ERC must be paid for the amount that the borrowing is being reduced by, less any overpayment allowance, if it is tied into a product at the time of redemption.  

Any early repayment charge will be detailed in the Mortgage Offer.

Applicants must have been in continuous employment for at least 6 months. To be continuous, there must be no break in employment exceeding 3 weeks.

Your client must have been in their current role for at least 1 month and have payslips demonstrating their monthly income. If they are self-employed, we need 2 years of business accounts.

There is limited ability to apply for affordability exceptions.

If you wish to raise an exception, please contact our Broker Team to discuss your request.

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Need to help an existing customer? You can support them with:

• Moving home and porting a mortgage.
• Switch rate by completing a product transfer.
• Apply for additional borrowing alongside a product transfer application.

If you require further information, please contact us.

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We do support Ex-Pat mortgages providing the customer resides in a country where NatWest International is permitted to lend.

• Product fee: this is the fee payable for the selected product and can be added to the loan. Adding this fee to the loan doesn’t affect the LTV rate banding and can be added on top of the maximum lend given for affordability.
• Legal fees: these are paid to the solicitor for legal work done on behalf of the customer (i.e. transfer ownership 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.
• Early repayment charge: this is payable if customer repays all or part of a mortgage during the deal period.
• Adding fees to the loan: A product fee is the only fee that can be added to the loan. Adding this fee to the loan doesn’t affect the LTV rate banding and can be added on top of the maximum lend given for affordability.
• Exception: Right to Buy - Legal fees can be added to the loan but only within the maximum LTV limits.
• Future fees: once your customer’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.

Visit our interest rate and charges section

We capture the following commitments in the ‘Expenditure’ 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.

Loans

• Hire Purchase
• Personal Contract Purchase (PCP)
• Secured Loan
• Unsecured Loan
• Student Loan
• Credit/Store Cards

Other financial commitments

• Dependant costs (child)
• School / education fees.
• Childcare costs
• Dependant costs (adult)
• Estate rent
• Service charges
• Ground rent
• Maintenance payments
• Second property costs
• Help to Buy loan - include 3% of the equity share (divided by 12) as a monthly commitment
• Other committed expenditure

Commitments with less than 6 months left to run, can be excluded when checking the affordability calculator. Exclusions to this are: credit cards and car finance agreements (e.g. Hire Purchase, PCP).

Where the customer has stated that they no longer need a car and will look to return it, we will still factor this payment into affordability.

Our definition of a First-time Buyer (FTB) is a customer who has not owned a property before.

• First-time buyer exclusive products are only available on a capital and interest basis and only available in the Isle of Man, Jersey and Gibraltar
• If the mortgage application is made by more than one person, one of the applicants must meet this definition to qualify for any first-time buyer exclusive mortgage deals
• A customer who has a buy to let property but is now seeking to purchase a residential property does not qualify. The customer is not buying for the first time as they have already bought a property.

We will use 90% of converted income as we apply a 10% haircut. For any foreign currency values other than GBP, the amount should be converted using an appropriate currency conversion tool and input as GBP in the application and will be subject to the exchange rate on the day of underwriter assessment.

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.

Please contact us if you require further information on our acceptable currencies.

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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 80% (75% for Buy to Lets)
• For this type of property, a standard valuation will be instructed

Property types we’ll consider are:

• Freehold flat (Max 80% LTV)
• Flying freehold flat (Max 80% LTV)
• Share of freehold flat
• Leasehold flat where the customer owns the freehold (We will require security over the leasehold flat and the freehold interest.) 

The valuation must confirm the property is readily saleable and a Solicitor confirms the Title is good and marketable.

For further guidance, please contact us.

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In all gifted deposit scenarios, we will require a completed Confirmation of Gifted Deposit form. 

Visit the useful forms section

Our Green mortgages are for UK residential and buy to let property purchases and remortgages with an energy performance rating of A or B.

For further guidance, please contact us.

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We don’t currently support mortgages backed by a guarantor.

Where additional borrowing is being raised for home improvements, we may require additional information.

The underwriter will confirm what is specifically required once they have initially assessed this. They may request:

• Builders’ quotes
• Planning Permission where applicable
• Contingency plans/evidence of contingency funds if costs overrun

Probate will allow an estate to be distributed to the relevant beneficiaries by the appointed representatives.

Please submit the application as:

• A purchase application where the property has not yet been transferred into the beneficiary’s name (but will be following completion of the mortgage) meaning Land Registry will not have been updated to show the beneficiary as the legal owner. We can treat the equity that is to be inherited as the clients own deposit in the same way we do for concessionary purchases. Please see Gifted equity/concessionary purchase.
• A Remortgage application where the property has been transferred to the beneficiary and Land Registry has been updated to show the beneficiary as the legal owner. This is still acceptable under our Back to Back / Day 1 Remortgage criteria.

The valuer will look at each case individually, considering things like how easy it is to sell, get a mortgage, and insure.

While they’re doing their assessment, they might come across some special risks, like Japanese Knotweed. If they do, they'll include this information in their report, and we might need to get a specialist to take a closer look.

Where a customer is relocating their residential home an underwriter may ask for clarity on the customer’s ongoing employment sustainability.

Please consider:

• Ability to continue existing role.
• Any additional accommodation costs.
• If your customer is changing their job, the underwriter is likely to require a signed contract for the new role. If the customer has had or is expected to have a break in-between jobs, please see Employment Status for our minimum continuous employment criteria.
• If your customer is self-employed please consider the impact on their customer base in your rationale.
• Changes to childcare provisions.
• Changes to benefit income where a household goes from sole occupancy to joint occupancy.

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. This could also result in the property being declined. 

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.

Portfolio Landlord/First Time buyer/Non-owner occupier

Maximum lending to age 80 or the customers intended retirement age where this is sooner. We don’t lend into retirement or where the customer is already retired.

Small Landlord

Maximum lending to age 80 irrespective of retirement age.

If you require further information, please contact us.

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We are not able to 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 will not allow customers to take any additional borrowing where the additional borrowing term extends into retirement.

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

Please review our lending criteria.

A Let to Buy is where they are currently letting out or intending to let out their existing residential property, in order to purchase a new property.

Buy to Let Application – Remortgaging the existing residential property

These applications can be considered, for more information on our Buy to Let criteria, please contact us.

Buy to Live Application – Purchasing the new property

Where the predicted rental income on the property to be let covers the expected mortgage payment, this can be disregarded from the affordability calculation.

We require a letter from a local ARLA-registered letting agent or estate agent to show the expected rental income.

If there is a shortfall then this must be disclosed as a monthly commitment.

Where we are doing the let to buy application and the new purchase application, the combined average Loan to Value (LTV) must be 80% or less. This is our standard policy however is subject to underwriters’ discretion.

Please see Financial Commitments. 

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.

Acceptable: Yes

Main or Other: Main

Key on application as: Shift allowance      

Evidence: Latest 3 months consecutive payslips

Child maintenance

Child maintenance can be accepted at 100%. This can either be court ordered or non-court ordered.

Court Approved Maintenance (spousal)

Can be accepted at 100%. This will be subject to underwriting and we may require sight of the court order.

• There is an expectation the payments will continue at the current level for at least the next 5 years and we may also need to understand how the customer will replace this income when it ends.
  
• We require up to 3 months bank statements to evidence this, please see your tailored packaging requirements upon submission of the Full Mortgage Application.
• The party paying the maintenance can’t be named on the bank account the maintenance is paid into.
• We can consider maintenance income paid by someone living abroad subject to the underwriters discretion, upon a Full Mortgage Application being submitted. This must be paid in an acceptable currency. 

Acceptable: Yes

Main or Other: Other

Key on application as: Child maintenance   

Evidence: Latest 3 months consecutive Bank Statements. May need Court order (where applicable). See case packaging requirements on Full Mortgage Application as these could differ.

Please review our lending criteria.

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.

Should your customer wish to explore their option or find out more they can visit our mortgage support webpage. 

We will charge interest monthly in arrears from the day on which we release the Loan to you or the conveyancer.

Interest on your mortgage is calculated daily on the outstanding balance and applied to your account monthly on the anniversary of completion. This is called the charging period.

• If there isn’t 14 days between the date you complete your mortgage and your chosen payment date, we won’t take your first payment until the following month.

For example, if you complete your mortgage on 15th January and your chosen payment date is 20th, your first monthly payment will be claimed on 20th February.

The first months interest will be added to your account on 15th February to cover the period 15th January to 14th February.

If your chosen payment date differs to the anniversary of completion date, there will be an interest balance that remains outstanding for the first month. This will remain on your mortgage balance until it’s paid, meaning you will pay more over the term of your mortgage.

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.

Offers are valid for 3 months from first issue.

If you require an offer extension, please complete our Mortgage Offer Extension form and submit it to us.

Visit the useful forms section

Customers can overpay up to an annual limit of 20% before incurring an early repayment charge.

They can choose to set up regular overpayments or make one off lump sum payments.

For regular overpayments

• We must receive your customers overpayment request at least 14 days prior to their next payment day in order for this to be processed in time for that payment, otherwise the change will take effect from their following payment date.
• Regular overpayment amounts will be collected with your customers 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.

Once an overpayment is made, the amount your customer owes is reduced immediately meaning they will be paying less interest on the outstanding balance straight away.

Our mortgage overpayment calculator can help the customer understand the effect an overpayment can have on their monthly payments and/or pay off the mortgage earlier. 

We can consider 100% of regular overtime.

Evidence regular overtime using 6 months of consecutive payslips. Use the 6-month figure to calculate annual overtime.

If the overtime is seasonal or varies month to month, you should use an average over 12 months. 

• The borrowers must match the proprietors.
• Tenants in Common where each person owns a set share of the property, this is acceptable and will be dealt with by the solicitor.
• We don’t lend to a trust or business.

Once you have submitted a full application you will receive confirmation of the packaging requirements for your individual case.

If you require further information, please contact us.

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When a customer is on maternity or paternity leave, it is important to understand the current and future circumstances for mortgage affordability purposes.

In all scenarios:

• We require evidence of the customer's income, prior to going on maternity leave, via the last three month's payslips showing previous pay.
• Ensure to capture a known increase in under 18 financial dependants.
• We require details of future childcare provision and costs, where applicable.

We reserve the right to request additional information if required.

Returning to work on the same basis

We will use the customer's basic salary earned prior to going on maternity/paternity leave for affordability purposes.

Returning to work on a different basis

We will use the customers future basic salary, based on a pro rata of the previous basic salary, prior to going on maternity/paternity leave, for affordability purposes.

Some payslip deductions must be included within our affordability assessment whereas others may be excluded where the applicant confirms the deduction is discretionary.

Common examples that must be included

• Student loan
• Cycle to work
• Car finance

Common examples that may be excluded

• Pension
• Railcard
• ShareSave

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 can't be used as income.

We can support you with:

• Porting guidance
• Porting amounts
• Porting a product with less than 6 months remaining
• Non-simultaneous porting
• Application process

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A power of attorney (POA) is a legal document which gives a person or persons (known as an Attorney) authority to take action or make decisions on behalf of another person.

There are many types of powers of attorney and different rules apply depending on where you live in the United Kingdom. More information is available from:

• England and Wales
• Northern Ireland
• Scotland

We may be able to consider mortgage applications made by an Attorney but this will depend on the type of POA in place and is always subject to our lending criteria.

We will require a copy of the Power of Attorney document and we will need to carry out identification and verifications checks on all Attorneys applying on behalf of someone else.

Guardianship, Controller and Deputyship

Where an application is made by a Guardian under a Guardianship Order (Scotland), a Controller under a Controller Order (Northern Ireland), a Deputy under a Deputyship Order or in line with an Order by the Court of Protection (England and Wales) we can consider these on a case by case basis.

We will require copies of all relevant court papers and we will need to carry out identification and verifications on all individuals appointed to deal with another person’s financial affairs.

Important

For Remortgage applications, customers will not be able to use our fee-assisted solicitors and will have to instruct their own solicitors who would need to be on our approved panel. 

We can consider a customer where they are in a Probationary period, provided they meet our minimum Employment Length. 

To discuss further please contact us.

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We lend to customers in England, Wales, Scotland, Isle of Man, Jersey, Guernsey and Gibraltar and exclude Northern Ireland

If you require more information, please contact us.

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We don't support regulated Buy to Let.

For reverse solicitation to apply, the request for a mortgage must be made at the exclusive initiative of the applicant. It also means that you haven't undertaken any direct or indirect marketing to the applicant.

We can consider Seafarers income if this is paid in an acceptable currency to NatWest International and can be evidenced via payslips and, where tax is not paid at source, the most recent SA302 or equivalent to confirm where the client is registered for tax.

The evidence requirements will depend on the customer's employment type.

We allow search indemnity insurance arranged by a clients solicitor for England, Scotland and Wales, 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.

We can use up to 100% of second job income.

We require a minimum of 6 months employment to utilise the income from a 2nd job. We will require a longer track record where the second job is not a permanent PAYE contract.

We can consider income from more than 2 jobs and would need to understand the overall sustainability of the income i.e. amount of hours worked each week. 

We can consider 2nd residential properties up to 80% Loan to Value (LTV).  

Where both residential mortgages will be held with NatWest, the average LTV should be no more than 80%.

• In all scenarios the mortgage payment of their existing or background property must be included as a commitment. We cannot offset this by any rent the customer may receive.
• Any other property related costs will need factored in to such as utilities, council tax, ground rent or service charge as relevant.
• Where a relative (e.g. parents) occupy the property and pay the utilities and council tax, please detail this on the application and we will look to exclude this from affordability.
• We can’t lend on a 2nd residential property where it will be let on a formal tenancy agreement.

We support Self-employed customers who operate as a:

• Sole traders.
• Partnerships (Simple Partnerships or Salaried and equity partners of LLPs).
• Limited companies.

Home Reports in Scotland contain a valuation for mortgage purposes. We ask our valuation partners to transpose this onto our own NatWest International valuation template subject to the original valuer being on our panel.

A transcript is only done for the purchase of an existing property and can't be used for new builds, private sales, remortgages, Buy to Lets or properties over £1 million. 

For Purchase cases only.

NatWest international requires both gross and net income figures for all customers in order to assess affordability.

If you require further guidance, please contact us.

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Acceptable property tenure:

• Absolute ownership (Scotland)
• Freehold
• Freehold (flying) – please see Freehold flats / Flying freehold properties
• Leasehold
• Sub-Leasehold

• Minimum term (Residential and Buy to Let)
  3 years or as set by the product
• Residential maximum term
  Capital and interest: 40 years
• Buy to Let maximum term
  35 years

Often received by staff in the hospitality industry. This should be treated as commission and evidenced in line with commission requirements.

Universal Credit may include:

• Standard Allowance - This can only be included where it can be evidenced from the award statement that the customer is employed i.e. the statement 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 statement, Universal Credit can’t be used for mortgage purposes.
• Children - This is treated the same as Child Benefit and Child Tax Credits.
• Housing - This should be deducted from the monthly payment figure and not included for mortgage affordability purposes.

The customer must provide their Universal Credit statement(s). This must include a full breakdown of this income. Circumstances are assessed each month meaning the amount paid may change.

Please note the customer(s) named on the award statement must match the application. 

A professional valuation, carried out by a valuer on the Bank's panel, is required.

For further guidance, please contact us.

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Learn how we support vulnerable customers.

Supporting customers when they need it most

We can accept up to 100% of working tax credits. The customer(s) named on the award statement must match the application.

Useful definitions

• Child Benefit & Child Tax Credits
• Universal Credit