NatWest Mortgage Review – Forbes Advisor UK
What kind of lender is NatWest?
NatWest, part of the Royal Bank of Scotland Group, is one of the UK’s largest mortgage lenders.
In 2018, the bank originated £30.5 billion in mortgages, according to our mortgage broker partner Trussle. That’s 11.4% of the total UK mortgage market.
The bank has both high street branches and mobile branches that visit designated locations in non-branch areas up to 6 days a week.
What types of mortgage offerings does NatWest offer?
As the numbers show, NatWest has a well-established mortgage presence in the mortgage market and offers a range of offerings for many different types of borrowers, including first-time buyers, movers and debt remortars.
Products include fixed-rate mortgages (principally two- and five-year terms), tracker mortgages, as well as settlement, interest-only and buy-to-let offerings.
Since the bank offers low deposit (high loan-to-value) mortgages, this could be a good option for beginners. Note, however, that it does not offer shared ownership mortgages.
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How long does a NatWest mortgage application take?
According to Trussle, NatWest takes an average of 16 days to process an application. This is four days faster than the 20-day average at lenders as measured by the broker.
Note that the time it takes for a mortgage to be approved depends on a number of factors, including the complexity of your circumstances and the workload of the lender. Covid has also caused some delays.
How much can I borrow from NatWest?
You may be able to borrow up to five times your annual income, but this depends on meeting the lender’s requirements. This includes your salary and also the LTV at which you want to borrow.
Factors such as age, creditworthiness, debt and regular expenses can also be taken into account. You can get an idea of how much you can borrow at NatWest Trussles Affordability Calculator.
Always remember that if you don’t keep up with your mortgage repayments, your home may be foreclosed on.
How do I get a mortgage from NatWest?
If you are thinking about applying for a NatWest home loan, you can do so either directly with the bank or through a broker.
First of all, you need to get a “mortgage in principle”. This shows you how much you can possibly borrow.
You can then fill out a complete application. If this is approved, you will receive an offer.
A broker or advisor can improve your chances of success by ensuring your application includes all the details required by the lender.
If you are buying for the first time (or buying a new build property), your offer is valid for six months – meaning you must complete your purchase within that time.
If you’re rescheduling or moving to a new home, your offer is valid for three months.
Do I need good credit for a NatWest mortgage?
Acceptance of a NatWest home loan is dependent on a strong credit history. And while the bank reviews applications on a case-by-case basis, if you have a bad credit history, you’ll likely be denied.
How is customer service at NatWest?
NatWest scores 55% for “Consumer Satisfaction” and 47% for “Consumer Confidence” with Fairer Finance as of January 2022.
The way complaints are handled gets a very good rating of almost 80% and the “Transparency Rating” is 52%.
Overall, the lender receives a “Customer Experience Rating” of 58%. To put this in context, the lenders with the highest scores on Fairer Finance receive an overall score of 70% or more.
Do I Need Home Insurance With a NatWest Mortgage?
When you take out a home loan with NatWest, you must have homeowners insurance for the life of your mortgage. However, the bank cannot insist that you take out one of their policies. The best thing to do is shop around and buy your cover from the provider that offers the best deal for your needs.
Likewise, you should also consider life insurance and home insurance when taking out a NatWest mortgage, although neither of these products are required as a condition of the mortgage.
Should I get a mortgage from NatWest?
NatWest is an established lender with a reputation for offering reasonable mortgage rates as well as potentially generous income multipliers.
Product fees can be high, so beware. While toll-free products are available, these will likely be offered at slightly higher rates.
You need to be cautious if your credit file has flaws, as the bank is unlikely to offer a deal to anyone with seriously bad credit.
Before deciding on a NatWest mortgage, it’s important to compare offers across the market to ensure you’re getting the offer for your circumstances and preferences.