The Five Top Reasons NatWest Turns Down a Mortgage Application
While there can be many reasons to be refused a mortgage, the following are the five most frequent reasons an applicant is turned down.
- Your deposit isn't large enough.
The NatWest policies mean you will need at least a 10% deposit as an absolute minimum. There are 5% mortgages on the market and even 100% mortgages if you have a guarantor, but you'll be highly unlikely to find them with this bank.
Note that NatWest does not offer guarantor mortgages, but they are available from many alternative lenders.
- You have a bad credit history.
NatWest will usually turn down applicants with a CCJ or DMP on their file immediately. Each lender has different rules about the credit issues they categorise as severe, and NatWest is notoriously strict.
Being turned down for a NatWest mortgage due to bad credit does not mean that another lender won't happily approve your application.
- You are starting a new job.
Income is always a crucial factor when applying for a mortgage, and some lenders will require you to have spent a minimum amount of time in your current role to be eligible to apply.
NatWest will usually turn down an applicant if you are about to start a new role. Their underwriters require at least one physical payslip to prove your income - even if you are due to begin very shortly and have an offer of work in writing.
Likewise, if you have just received a pay rise or promotion, the bank will usually refuse to consider your increased earnings in their affordability assessment.
- You have used payday loans in the past.
Payday loans are considered high-risk finance, and NatWest is one of several high street lenders who will not offer a mortgage to anybody who has this borrowing on their credit file.
You can usually apply to NatWest if the loan was some years ago but are likely to have a rigorous assessment from the underwriter before offering to lend.
- The survey returns a problem with the property.
It is possible to have an agreement in principle but be rejected at the final application stage, which can be very frustrating.
That could be because the survey reported a problem, such as the property being built from non-standard materials or not having the correct building accreditations. NatWest does not offer mortgages on modular buildings.
The good news is that even if you have been declined for several reasons or something not on this list, finding more suitable lending through the Revolution Brokers team is almost always possible.
Whether you need a specialist bad credit lender, a niche self-employed mortgage provider, or a lender who will accept a smaller deposit, our independent team will work through the circumstances to match you with the best option.
What Should I Do If NatWest Has Rejected my Mortgage Application?
It might be tempting to start immediately compiling a complaint or another application, but if you've been turned down for a mortgage, a considered approach is your safest bet.
Don't be tempted to start applying to other banks before consulting the mortgage advisors team. The chances are that if one high street bank has turned you down, another will too - and it's far better to use an experienced broker to work out a plan than to rack up numerous failed applications on your credit report.
Next, we'd suggest asking NatWest to explain why they have turned you down.
If you know the reasons and have copies of all surveys or reports compiled, it will help you find a better lender knowing which criteria you didn't meet with this particular bank.
Revolution Brokers is a whole-of-market broker - which means we aren't tied to any bank, lender or product and recommend any mortgage option we think is entirely suited to your requirements.
Give the team a call, and we'll help you identify the best options to get your application submitted to a lender who is much more likely to return a positive response.
