NatWest has made a number of announcements this week. See below for the details on each of the following topics:
- Changes to Product Range
- New Build Offer Extensions
- Mortgage Prisoners Annoucnement
Changes to Product Range
Effective from the 24th September, NatWest will be making rate changes across both our New and Existing Customer ranges.
For our new business products we will be re-introducing a selection of broker exclusive 2 and 5 year fee based purchase products. We have also made rate increases to our new business purchase products and switcher products respectively.
The summary of the rate changes are as follows:
A. Core Range
- Purchase: Rate increases of up to 35bps on selected 2 year deals and up to 25bps on selected 5 year deals
- Purchase – New Products: Launch of 2 & 5 year fee based purchase products
A. Core Range
- Switchers: Rate increases of up to 26bps on selected 2 year deals and up to 15bps on selected 5 year deals
New Build Offer Extensions
Confirmation of New Build Offer extension process which is effective immediately.
Offer extensions will now be available for a three-month period and should be applied for within 30 days of the expiry of the original offer.
A maximum of two offer extension can be applied for resulting in a total offer extension period of 6 months.
What you need to know:
- Upon receipt of an offer extension request NatWest will confirm the valuation of the property has not changed.
- The request will also be assessed and consider any change in the Customers circumstances that you have made us aware of.
- To reflect ongoing market uncertainty, any offer extensions granted will be valid for a 3-month period.
- If the original valuer advises the value is likely to be significantly higher/lower, a standard valuation will be instructed, the cost of this valuation will be borne by the Bank.
- Offer extensions can be requested on a maximum of two occasions and will be subject to confirmation of value and completion of existing underwrite checks in increments of three months.
The three months offer extension request form can be found on the Useful Forms and Guides page of our Website:
Please use the “EMAIL FORM” button at the bottom of the Request form to submit and attach any accompanying documents in support of the Request.
Should you have any questions in relation to the above please speak directly with your BDM.
Mortgage Prisoners Help
Due to changes in affordability requirements following the 2008 financial crisis there are an estimated 140,000 borrowers who are unable to switch to a better deal; many are paying high interest rates with closed book or un-regulated lenders. The FCA has identified these customers as ‘Mortgage Prisoners’.
To help these borrowers the FCA has updated affordability requirements to allow us to include a borrower’s track record of making mortgage payments as part of a proportionate affordability assessment.
What’s you need to know
At NatWest Intermediary Solutions we’re proud to be helping customers and communities succeed by working with FCA selected brokers, of which you are one, in order to support Mortgage Prisoners.
For clients identified as Mortgage Prisoners we will apply a more suitable and proportionate method to assess affordability. We will only be accepting applications for FCA identified mortgage prisoners, who have been contacted directly by their existing lender and have the appropriate letter confirming this.
All standard NatWest remortgage products that your client qualifies for are available for Mortgage Prisoners. No additional borrowing will be available (except for finance product/arrangement fees, intermediary fees and consolidation of un-secured loans linked to the mortgage).
What’s you need to do
To support you in processing Mortgage Prisoner enquiries and applications we have created a dedicated NatWest Mortgage Prisoner Hub, which is only accessible to FCA selected brokers.
Please initially assess Mortgage Prisoners with our standard remortgage calculator, so that we can offer additional borrowing or consolidation of debts to further help clients if they meet our standard affordability requirements.
For Mortgage Prisoners who fail our standard affordability checks, we have created a Mortgage Prisoner Calculator to help you understand if your client is likely to pass the modified affordability assessment created for identified Mortgage Prisoner applications only.
When submitting a Mortgage Prisoner application, select the option “this customer is a mortgage prisoner” to allow us to process this case correctly.
For mortgage prisoner applications, when completing the application form online you will see a ‘refer’ message, however you should still continue to complete and submit the application in the normal way.
You must Include the customers Mortgage Prisoner letter from their current lender in addition to your standard remortgage packaging. If this is not included the application will be unable to be assessed on a modified affordability.
For any questions, please contact your BDM directly who will be happy to help.