The Ultimate NatWest Remortgage Guide
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This guide will give an in-depth view into this process and outline its benefits, drawbacks, and key considerations so you can make an informed decision as to whether to remortgage with NatWest mortgages makes sense for you.
Why Remortgage with NatWest?
NatWest offers a diverse range of mortgage products at highly competitive rates. Whether they are already your mortgage lender of choice or you’re shopping around for better offers elsewhere – NatWest can save you money with their competitive remortgage deals that could potentially save money over time. Here are some reasons why you might consider a NatWest remortgage:
Lower Mortgage Rates with a NatWest Remortgage
Remortgaging with NatWest mortgages could result in lower mortgage rates, potentially reducing monthly repayments. But to find the best possible rate it’s essential to compare multiple lenders so as to find your perfect fit.
Key Points:
Remortgaging can sometimes secure a lower mortgage rate.
If your current deal expires and you don’t arrange a new one, you could be moved to NatWest’s Standard Variable Rate (SVR).
Remortgaging before moving to the SVR can keep your monthly mortgage payments lower.
Variety of NatWest Mortgage Deals
NatWest provides a range of mortgage products tailored specifically to meet customers’ individual needs and future plans. Working with an agent, you can explore these options to select one that is the most suitable to your financial situation.
Key Points:
NatWest offers a comprehensive selection of mortgage products.
These products include fixed-rate, variable-rate, and tracker mortgages.
Depending on your financial situation, NatWest’s options can offer security or potential savings.
NatWest Remortgage Timeline
A remortgage with NatWest typically takes between 4 to 8 weeks from the application date. However, to ensure a smooth process and avoid moving onto a higher Standard Variable Rate, it’s recommended to start the remortgage process around 20 weeks before your existing fixed rate ends. This allows ample time to secure a competitive interest rate and eliminates the need to rush the remortgage process.
Working with a mortgage broker can help speed up the remortgage process. They’ll guide you through each step and ensure you’re well-prepared.
Working with a Mortgage Broker for a new mortgage deal
Working with a broker can make the remortgaging process smoother and more efficient. Brokers offer expert advice, can explain various loan products available, and guide applicants through the application process – these benefits make hiring one worthwhile:
Expert Advice
An experienced mortgage broker can offer expert guidance tailored to your personal needs, helping you understand both the potential advantages and drawbacks of refinancing, as well as helping guide an informed decision regarding remortgage.
Access to a Wide Range of Products
Mortgage brokers have access to an expansive selection of NatWest mortgage products that may best meet your needs and financial situation. By comparing different loans, mortgage brokers can assist in finding one that fits best.
Support Throughout the Application Process
Mortgage brokers offer invaluable assistance during the application process, helping gather documents and fill out applications quickly and efficiently – all to reduce stress levels and make life simpler!
Case Study: A Smooth Remortgage Transition with NatWest
The mortgage adviser helped them understand their current mortgage deal, the potential new deals available, and how much they could potentially save by remortgaging. With the broker's assistance, Sarah and John applied for a remortgage with NatWest. The process was smooth and efficient, taking just six weeks from application to approval.
Sarah and John's case demonstrates the benefits of remortgaging with NatWest, especially when guided by a knowledgeable broker. The process was straightforward, and efficient, and ultimately led to a better mortgage fixed-rate deal and affordable monthly payments for the couple.
- A TREE PLANTED FOR EVERY MORTGAGE
How to Apply for a NatWest Remortgage
Applying for a NatWest remortgage is similar to applying for a new mortgage loan; here are the steps involved:
Step 1: Receive Communication from Your Current Lender
If you’re on an introductory deal, NatWest will contact you well in advance of its expiry date. This is your cue to start considering remortgaging options.
Step 2: Request a Closing Balance
Ask NatWest for a redemption statement. This document outlines the amount needed to pay off your remaining mortgage loan, including fees. This is the amount you’d need to borrow if you decide to remortgage.
Step 3: Engage a Mortgage Broker
Mortgage brokers are an invaluable resource in helping you secure the ideal deal for your circumstances. Their industry knowledge allows them to search the whole market and may have exclusive offers available only through them. In addition, your broker will guide you through every step of the process, ensuring you understand all options available to you.
Step 4: Decide on the Type of Mortgage
NatWest provides both repayment and interest-only mortgage options amongst others; if selecting an interest-only loan you’ll need a plan to repay at the end of the mortgage term. Your broker can help explain all aspects of each type of mortgage and help guide you to make the right choice based on your individual situation.
Step 5: Prepare for Eligibility and Affordability Checks
Gather documents like bank statements, payslips, utility bills, credit card statements, ID, records of regular outgoings, proof of bonuses or commission, and your P60. Having these ready can speed up the process. Your broker can assist you in preparing all the necessary documentation.
Step 6: Obtain a Mortgage in Principle
If NatWest is satisfied with your documents, they’ll issue a Mortgage in Principle (MIP). This is a non-binding indication of how much they might be willing to lend. Your broker will explain the significance of the agreement in principle and guide you through the next steps.
Step 7: Arrange a Valuation
NatWest will arrange a valuation to confirm the house is worth the amount you’re asking to borrow. This is usually paid for by the customer, although some deals include it. Your broker will help coordinate this process.
Step 8: Submit Your Mortgage Application
As part of your application for credit, provide information about your job, industry, income, spending habits, spending patterns, credit history, and deposit size as part of your mortgage application. More evidence supporting your reliability increases the chance of approval of your application. Your broker can assist in filling out and reviewing it accurately to make sure all information provided is complete and accurate.
Step 9: Receive Your Mortgage Offer
If approved, NatWest will send you a mortgage offer letter. This outlines the amount you can borrow and any conditions. Check it thoroughly and inform NatWest if anything is incorrect or if your circumstances have changed. Your broker will help you understand the terms of the offer and guide you through the acceptance process.
Step 10: Solicitor Draws Down Mortgage Funds
Your solicitor will request the money from NatWest and use it to pay off your old mortgage. Your broker will liaise with your solicitor to ensure this process runs smoothly.
Step 11: Register the New Mortgage
Your solicitor will register the details of the new mortgage holder with the Land Registry and transfer title deeds if applicable to NatWest. Your broker will keep you updated on the progress of this final step.
Remember, each journey to refinancing can differ and the mortgage process will depend on both your circumstances and the mortgage provider’s requirements. Your broker is there to support you every step of the way.
NatWest Remortgage Calculator
Use NatWest’s simple Remortgage Calculator below to estimate how much money you could potentially save by refinancing with us, rather than switching onto an SVR mortgage rate. Our tool provides an estimate of how much you could borrow on your next mortgage and what monthly repayments might look like – perfect for both new and existing customers alike, giving an initial idea of your options before speaking to a broker or lender directly.
Key Considerations When Remortgaging with NatWest
Before embarking on the journey of refinancing, it’s essential to carefully consider various factors that could impact both your decision and process. Your broker can guide you through this process but here are a few key points:
Early Repayment Charges and Your Current Mortgage Deal
If you’re considering refinancing before your current mortgage fixed-rate ends, be aware of any early repayment charges (ERCs). Your broker can help you understand the implications of an early repayment charge and calculate whether remortgaging early is the right move for you.
Key Points:
Early repayment charges may apply if you refinance before your current deal ends.
Depending on the size of the ERC, remortgaging might still be beneficial if the new deal offers significant savings.
NatWest Standard Variable Rate
If your current mortgage interest rate is ending and you don’t arrange a new remortgage deal, you’ll be moved onto NatWest’s Standard Variable Rate (SVR). It’s advisable to start the remortgage process three to five months before your current deal ends to avoid higher rates.
Key Points:
You’ll be moved to the SVR if your current deal ends and you don’t arrange a new one.
SVR rates tend to be higher than fixed or discounted rates.
Start the remortgage process 3-5 months before your current deal ends to avoid higher rates.
Credit Rating
A new lender will always make a credit check on you before they accept you for a mortgage. Therefore your credit rating plays a crucial role in your remortgage application. A strong credit rating can secure you a lower interest rate. If you’ve had issues in the past, consider reviewing your report and strengthening it before applying.
Key Points:
Your credit rating is crucial in your remortgage application.
A strong credit rating can secure a lower interest rate.
Consider strengthening your credit rating before applying if you’ve had issues in the past.
Financial Circumstances
NatWest will assess your financial situation when considering your remortgage application. If your circumstances have significantly changed since taking out your current mortgage loan, this could impact your application.
Key Points:
NatWest will assess your income, expenses, and any outstanding debts.
Changes in your financial circumstances can impact your application.
A broker can help you understand how changes in your financial circumstances might impact your application.
Additional Options When Remortgaging
Remortgaging may present you with many additional options that you should carefully consider, as these could give your situation greater flexibility and may suit it perfectly.
Porting
NatWest Porting Mortgage allows you to transfer an existing mortgage deal onto a new property. This option may be especially advantageous if your current deal offers lower interest rates than what’s currently available on the market. NatWest mortgages allow porting for many of their products; it is best to discuss porting with your broker to understand any implications and costs involved before porting is undertaken.
Product Transfer
A product transfer (NatWest Mortgage Switch) involves switching to a new mortgage fixed rate with the same lender. This can be a simpler and quicker process than a full remortgage, as it doesn’t require a full property valuation or solicitor involvement. If you’re currently with NatWest as your lender but would like to switch for better terms, a NatWest mortgage renewal or a NatWest product transfer could be the right decision. Your broker can help explain all of its potential benefits and drawbacks.
Raising Funds
If your property has equity, remortgaging could provide an opportunity to unlock some of that equity and receive a lump sum that can be used towards home improvements, debt consolidation, or any other purpose. But keep in mind that doing this could increase both your mortgage balance and monthly repayments on your mortgage; speak to your broker to assess if this option is a suitable choice for you.
Changing Lender
If your current lender doesn’t meet your needs or another one offers a better offer, remortgaging might be a solution to consider switching lenders when refinancing. A remortgage involves paying off your current mortgage with proceeds from another one and setting up another new one with different terms; your broker can assist with comparing deals across all mortagage lenders as well as assist in changing them over.
Frquently Asked Questions
How long does a remortgage take with NatWest?
Remortgaging with NatWest typically takes between four and eight weeks, depending on your individual circumstances and the complexity of your mortgage application.
How far in advance can I remortgage NatWest?
It's advisable to start the remortgage process with NatWest around three to five months before your current mortgage deal ends. This allows enough time to complete the mortgage application process and avoid moving onto a higher Standard Variable Rate.
Can a bank refuse to remortgage?
Yes, a bank may decline your application if they feel you do not meet their lending criteria - for example, a poor credit history, insufficient income, or changes in your financial circumstances may prevent approval.
Is it hard to get a remortgage?
Remortgaging can be challenging depending on a number of factors, including your credit rating, income, property value, and equity in your home. An experienced broker can guide you through the process and increase your chance of approval.
Conclusion
Remortgaging can be a beneficial financial strategy for homeowners looking for better mortgage deals, lower monthly mortgage payments or to free up equity from their property. NatWest offers several remortgage solutions tailored to various financial situations; it is important that when considering remortgage options consider all aspects such as costs, benefits, and your personal circumstances. Working with a mortgage broker will guide the process and help make an informed decision tailored specifically to you and your circumstances.
Remember, this guide is intended to provide general guidance on remortgaging with NatWest. For personalised guidance tailored specifically to your situation, it’s wise to speak with a broker or financial advisor.
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Grant Humphries (CeMAP)
Grant Humphries (CeMAP) is a proficient Mortgage & Protection Adviser at YesCanDo Money. With a career spanning since 2001, Grant has honed his expertise in understanding mortgage lenders' criteria, complex financial situations, and the nuances of the mortgage market. His deep knowledge enables him to provide tailored solutions, especially for professionals and those with unique financial profiles. At YesCanDo, Grant's commitment to excellence is evident. He takes pride in guiding clients through their mortgage journey, ensuring they feel confident and informed at every step. From first-time buyers to seasoned investors, Grant's analytical approach and dedication make him a trusted adviser in the financial landscape
