NatWest Mortgages Reviewed

Mortgages are available to home movers, first-time buyers looking to get on the property ladder, and existing mortgage owners wanting to switch to a better deal.

The mortgage types NatWest offers include:

Fixed-rate mortgages

With a fixed-rate mortgage, the interest rate on your loan will be fixed for the length of your introductory deal (between 2-5 years). After this time, you will fall onto NatWest’s standard variable rate unless you remortgage to a new deal.

A fixed mortgage is a good idea if you want the peace of mind that the repayments on your mortgage won’t change during the introductory period.

Tracker rate mortgages

With a tracker-rate mortgage, the interest rate on your loan will rise and fall in line with National Westminster Bank Plc’s base rate.

If the interest rate drops, your mortgage payments will also drop. But if the rate rises, your monthly repayments will be higher and the total cost of your loan will increase.

Your home or property may be repossessed if you can’t afford to pay your mortgage, so keep this in mind when considering tracker mortgages.

Cashback mortgages

First-time buyers who choose from NatWest’s ‘first-time buyer exclusive range,’ will be given a lump sum of cash on the day they draw down their mortgage.

The amount of cashback you receive will be dependent on the mortgage that you have applied for. Currently, eligible customers can receive between £150 – £1000 as a lump sum.

90% LTV mortgages

NatWest offers a range of LTV mortgage deals, including home loans with a loan-to-value of 90%.

With a 90% LTV mortgage, the lender will let you borrow 90% of the property value provided you put down a 10% deposit.

In the case of a house costing £200,000, for example, your 10% down payment would equate to £20,000 and your loan from NatWest would be £180,000.

NatWest offers 91-95% LTV mortgages too, so if you can’t afford a 10% deposit, you may be eligible for a higher LTV with a lower down payment. Be aware that higher LTV deals come with higher interest rates so your total loan amount will increase.

If you want to make money from renting out properties, you may be eligible for one of NatWest’s fixed buy-to-let mortgages that are offered on either a repayment basis (capital and interest together) or an interest-only basis.

To be eligible for one of NatWest’s buy-to-let mortgages, you will need to be over 18 years of age, have a deposit of at least 25% (or 35% if buying a flat or new build house), and be looking for a property that is worth at least £50,000. Other eligibility requirements will also apply.

Not all property investments are eligible for a loan. Currently, NatWest doesn’t offer buy-to-let mortgages on multiple tenancies, Homes of Multiple Occupancy (HMO), bedsits, holiday lets, ‘Related Person’ tenancies, or properties that are under a selective licensing scheme.

Loan-to-value (LTV) is the percentage of the property value that is covered by your mortgage. The maximum LTV offered by NatWest is 95%.

In the case of a 95% LTV mortgage, you could buy a property with a 5% deposit and a loan from NatWest that covers 95% of the property’s price.

Example: For a property costing £200,000 and a mortgage with a loan to value of 95%, NatWest will lend you £190,000 if you can put down the £10,000 deposit.

• Mortgage Loan: £190,000 = 95%
• Deposit: £10,000 = 5%

Our expert remortgage advisors have written a very helpful guide on the process of a Natwest Remortgage.

At the time of writing (Feb 2023), NatWest has slashed some of its mortgage interest rates, which is good news for borrowers. But is the bank offering the best deal? There are many other lenders on the mortgage market, so before you borrow money, it’s wise to consider all of your options.

At YesCanDo Money, our experienced team of advisors can compare NatWest’s mortgage deals with the products being offered by other mortgage providers, and give you up-to-date information on the best deal based on your personal circumstances.

We can also advise you on the steps you need to take to be eligible for the lowest mortgage rates, to ensure your level of borrowing doesn’t exceed what you can afford to pay after you have been given your mortgage offer.

Contact us to learn more and benefit from all the advice and support we offer as a Fee Free broker.

In March 2023, NatWest Bank introduced a new mortgage policy which will enable customers with fixed rate or tracker mortgages to save money by making up to 20% additional payments without incurring any early repayment charges.

Read our guide on the NatWest mortgage overpayment increase.

A NatWest Mortgage Switch, also know as a product transfer allows existing mortgage customers to switch to a new deal within NatWest’s range. This service is available for those on a standard variable rate or within 6 months of their fixed or discounted rate expiry. The process involves checking eligibility, submitting a transfer request, and accepting a new deal. Benefits include no further income or affordability assessments, a wide range of deals, and the same rates whether applying directly or through a broker. This makes the transfer process quicker, simpler, and potentially more beneficial for customers.