Mortgage Advisor & Director
Mortgage Advisor & Director
First of all, it’s important to understand that being rejected by one mortgage lender won’t necessarily mean that you’d be rejected by the next. Each lender has very specific criteria and not all applicants will meet these, either due to their personal circumstances, or their choice of property.
Being rejected by NatWest, or any lender, for that matter, however, highlights the importance of finding a lender with criteria that matches your circumstances and needs. We explain some common reasons why NatWest may decline your mortgage application, and how we can help you to overcome this setback.
Why would NatWest decline a mortgage application?
NatWest, like any lender, will decline a mortgage application if their criteria is not met by the borrower, and or the property they are buying or remortgaging. Here are some of the most common reasons you may have a mortgage application rejected by NatWest:
Unsatisfactory credit history
NatWest takes quite a strict stance on credit history, even compared to some other high street banks (who tend to be stricter than building societies and specialist lenders). They are not usually willing to look at CCJs or defaults unless they are satisfied and/or very minor.
Those with debt management plans, IVAs or bankruptcy are likely to be automatically declined. Equally if you’re currently repaying a payday loan, NatWest will automatically reject your application. If you’re not upfront about, or are unaware of any bad credit you may have, then it’s possible you could have a NatWest mortgage agreed in principle, then declined at the underwriting stage, when they do a more in depth search of your background.
It’s worth noting that NatWest don’t accept guarantor mortgage applications, so if you do have bad credit, it’s best to speak to a broker, like ourselves, instead
Unsustainable income
NatWest will need to be confident that you’re able to commit to repaying your mortgage in the long-term, which means that if you’ve just started a new job, particularly if this is a change in career direction, they may be cautious with your application. This is especially true of self-employed roles, where you’ll usually need to provide evidence of at least 12 months of stable income. In an employed role, it’s usually best to have a few payslips available at your current income level, before making an application.
Property related issues
NatWest may decline an application after the survey has been carried out on your chosen property, depending on what is reported. A common reason is if they feel that the property has been over-valued, where they may reduce the LTV of their lending, or in some cases, decline the application after valuation. They also tend to be reluctant to lend on non-standard construction properties, and usually require a Buildoffsite Property Assurance Scheme (BOPAS) accreditation for those that they will consider. NatWest also usually decline applications where subletting via Airbnb or similar is intended.
Age limitations or other personal circumstance restrictions
NatWest have a minimum age of 18 and maximum age limit of 72, at the point of application, so if you don’t fall within this range you won’t be able to apply. It’s also worth considering that they won’t lend into retirement, so if your mortgage term is likely to extend into your retirement years, you would likely need to apply for a shorter term, or risk being rejected.
That said, if you’re already receiving a documented retirement income and are under the maximum application age, you may be able to apply for a mortgage based on your retirement income.
What to do if they have rejected you for a mortgage
If NatWest has turned down your mortgage application:
1. Don’t panic - There are over 90 mortgage lenders in the market and being declined by one isn’t always the end of your home buying journey
2. Find out why you were declined - You have the right to appeal their decision, but keep in mind that they won’t necessarily overturn their original ruling. Nevertheless, knowing why you were declined will help you when it comes to your next application attempt. Ensure you have copies of your credit report and any surveys completed on the property
3. Speak to an expert - Although it might be tempting to try another lender straight away, don’t! Multiple declined credit applications can further impact your credit record and make securing a mortgage harder. An expert broker, like us, can review the reason you were rejected for a mortgage and recommend a lender whose criteria you are able to meet. We know criteria like the back of our hand, so can avoid any lenders where your reasons for decline would be a problem
Get your mortgage plans back on track today
Is NatWest a strict mortgage lender?
NatWest eligibility tests are in line with many other mortgage lenders, although they may be deemed strict with some of their criteria, particularly anything that falls under the umbrella of a bad credit application. That said, they don’t have a particularly low approval rate for mortgage applications, when compared to similar lenders, like other high street banks.
If you are concerned about your credit history, however, it’s a good idea to speak to a broker, rather than applying directly with any high street bank.
How Teito can help you get your plans back on track
If you’ve been declined for a mortgage by NatWest or any other lender, it can be disheartening. However, try not to worry, as professional help and guidance can make all the difference when securing a mortgage.
At Teito, our brokers have secured many mortgages for applicants who have previously been declined. In some cases we may be able to make recommendations and negotiate with the lender on your behalf.
Failing that, we have access to the whole of the mortgage market, and can look at alternative lenders who have criteria that more closely match your circumstances. They can also advise you on improving your credit rating, framing your finances in a more attractive light and overcoming property-related obstacles.
Other customers with declined mortgage applications chose use because:
- Our brokers specialise in overturning mortgage rejections at any stage of the process
- We offer a free, no obligation, initial consultation
- We are 5-star rated across many leading review sites
- We can help you prevent any further declined applications by steering you away from the wrong lenders for your circumstances
Get in touch today and speak to our friendly team!
FAQs
NatWest usually fully refunds the valuation fee, unless your mortgage was declined for an issue directly related to the valuation report.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.