Residential lending guide - NatWest Intermediary Solutions - ONLY FOR USE BY MORTGAGE INTERMEDIARIES
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
ONLY FOR USE BY MORTGAGE INTERMEDIARIES
NatWest Intermediary Solutions
Residential
lending guide2
This guide provides you with an overview of the key information
you need to know about our residential lending. However, it is not
exhaustive and is subject to change, so if you need clarification on
anything please speak to your BDM.
Contents
Proc fees for residential mortgages Page 3 Submitting an application
Online submission Page 12
Our lending criteria Supporting documentation Page 12
Purchases and remortgages Page 5 Certification and packaging Page 13
High LTV mortgages Page 6
Help to Buy schemes Page 7 Post - submission
Day 1 valuation instructions Page 15
Affordability and gifts Offer validity Page 15
Affordability Page 9 Concierge service Page 15
Gifted deposits and equity Page 9
Need help?
New Build Pre-submission applications Page 16
Lending limits Page 10
Maximum LTVs Page 10
Structural warranties Page 10
Builder’s incentives Page 11
Minimum loan amount Page 11
Offer validity Page 11
Proc fees
DA firms AR firms
Residential 35bps gross 40bps gross
Max £10,000, min £250.
Information correct as at 1 January 2019.
34
Our lending criteria
Here’s a summary of some of the key elements
of our lending criteria:
Purchases Remortgages
Minimum loan: £10,000 (or that set by the Minimum loan: £10,000 (or that set by the
individual product, whichever is greater) individual product, whichever is greater)
Maximum loan: £10m Minimum term: 3 years
Maximum term: 35 years (30 years if an Maximum loan: £2m
Interest Only loan exceeds £500,000) Maximum term: 35 years (30 years if an
Family gifted deposits accepted – cash Interest Only loan exceeds £500,000
or equity Debt consolidation allowed, any legal
Second purchase at residential rates purpose considered
accepted, subject to affordability Up to 90% LTV accepted on debt
New Build – any property built, consolidation, but no restrictions on amount
first occupied in its current state or Overpayments allowed – 10% of balance
significantly modernised, refurbished or in a rolling 12-month period
altered within the last two years:
– Maximum LTVs: flats 75%, houses 85% Unencumbered properties accepted
(over £1m 75%) (minimum time owned 6 months and not
self-build), fees free
Shared equity schemes – we consider
applications using Government schemes Free of legal and valuation fees for a
standard remortgage*
Existing NatWest mortgage rate can be
Remortgage offers valid for 6 months
transferred to new property purchase
*We won’t charge your customers legal and valuation fees for a standard remortgage. There maybe instances where a
customer does not qualify for this. Please speak to your BDM if you require any information in this regard.
5High LTV mortgages
95% LTV purchase only mortgages No limit on annual income earned by
applicants
2 and 5 year fixed rate deals available
Further advances considered up to 90% LTV
Available to first-time buyers and existing
home owners Capital and interest only
Available for existing properties only and Applicants must be aged 18 or over
NOT New Build properties £0 product fees
Residential purchase only Property must be in the UK
Maximum property value: £600,000
Applicants need a minimum 5% deposit
Subject to an underwriter’s discretion.
6Help to Buy schemes
Help to Buy: shared equity Customers must take a mortgage of at
least 25% of the value of the property they
Open to all intermediaries and is available
are purchasing
for New Build properties only
Maximum LTV: 75%
Available to first-time buyers and
existing homeowners Maximum property value: £600,000
Applicants need a minimum 5% deposit No percentage limit on deposit customer
Customers must take a mortgage of at can contribute from their own funds
least 25% of the value of the property they Customers using this scheme can apply
are purchasing for our existing Help to Buy shared
equity scheme mortgage using the same
Government will loan up to 20% of
product code
property value
The criteria and application process are
Maximum LTV: 75%
the same as the existing Help to Buy
It must be the primary residential and shared equity scheme
only property
Repayment is by Capital & Interest Only
Maximum property value: £600,000
Minimum 5% limit on deposit and customer Help to Buy: Forces
can contribute from their own funds
The Forces Help to Buy (FHTB) loan
Need to apply for eligibility through a available to Armed Forces personnel, is an
HomeBuy Agent in region of desired property interest-free loan repayable over 10 years
3% of equity loan per year factored It can be used towards the customer’s
into affordability calculation as monthly deposit but the monthly repayment
commitment must be included in the outgoings for
Builder’s incentives up to a maximum of assessing affordability
5% of the property value accepted The FHTB loan may not be used towards
We will consider consent to let for the purchase of a second property
members of HM Armed Forces including a buy-to-let property.
Property must be in England No other unsecured personal loans are
accepted towards the customer’s deposit
Repayment is by Capital & Interest Only
Help to Buy: London
The scheme is designed to help customers
with an equity loan of up to 40% of
the purchase price to buy a New Build
property in London
Only New Build properties in the specific
London boroughs can be purchased using
this scheme. Customers and their solicitors
are responsible for ensuring the property is Credit criteria are subject to
within the scheme area change so please check first
Customers must contribute a minimum with LiveTALK or your BDM if
5% deposit you are unsure.
78
Affordability and gifts
Affordability If your customers are receiving a
Our affordability calculator mirrors gifted cash deposit
the one used by our underwriters to We accept deposits from parents and/or
ensure consistency guardians. We treat them as if they are the
Debts being repaid are not included in applicant’s own deposit, even where the
the calculation money is advanced against a formal loan
agreement or a second charge is put
Maximum age for lending is 70, subject
in place to secure the family member’s
to affordability
rights. Any monthly cost relating
Loans with less than 6 months to run to a formal loan agreement must be
not included included in the affordability calculation
Where the loan amount is more that Gifts from third parties (not sellers/vendors)
£500,00, the maximum term is 35 years are an acceptable source of customer
(30 years for Interest Only loans) deposit, provided no repayment required
Lifestyle expenses – we use data supplied
by the Office of National Statistics (ONS) If your customers are receiving
to assess an applicant’s lifestyle expenses gifted equity when buying from a
which are automatically built into the
affordability calculator family member
Childcare costs - customers need to We accept transactions under value where
include their specific childcare costs as a the applicant is receiving a gift of equity
financial commitment in the calculator. from a family member/business with a
If childcare costs are unknown, customers deed of gift to represent the amounts
should suggest likely future costs or you The maximum loan amount can be based
can refer to the national average figures, on the valuation not the purchase price
which you can find on the ‘A-Z of lending The applicant may need to have an
criteria’ page of our website under indemnity set up via their own solicitor,
‘Childcare costs’ even when the money is advanced against
a formal loan agreement or a second
charge is put in place to secure the family
member’s and/or family business’s rights
The family member gifting the equity
is allowed to remain a resident at
the property after the sale completes
(residential only NOT buy-to-let)
9New Build
A New Build property is defined as:
Any property built, first occupied in its current state or significantly
modernised, refurbished or altered within the last two years.
The decision as to whether a property meets this definition will
be made by the valuer at the point of valuation.
Lending limits detailed in the CML Lenders’ Handbook.
The solicitor acting for NatWest should
A limit will be set for each New Build
confirm the requirements are met and that
development. Limits will vary according
the Certificate was issued prior to exchange
to each development and must not
of contracts. Architects’ Certificates without
exceed 25%
the benefit of the Professional Consultant
The limit will be set and monitored by our Certificate are not acceptable
Valuation Panel Manager
Structural warranties issued
retrospectively cannot be accepted
Maximum LTVs
Builder’s incentives
Flats 75%, houses 85%*
We accept builder’s financial incentives
These are based on net purchase price or on New Build properties up to 15% of a
valuation whichever is lower property’s purchase price and up to 5% on
These maximums also apply to further a property bought using the Help to Buy
advance requests if the property meets shared equity schemes
the New Build definition above The purchase price will not be adjusted
* 75% for mortgages over £1m for incentives, unless the total amount of
incentives exceeds 5% of the purchase
Structural warranties price. Incentives greater than 5% will
be deducted and lending based on the
We will only lend on New Builds/ reduced purchase price (unless the
renovations where there is a 10 year or property valuation is lower)
longer Structural Warranty in place from
our list of approved suppliers (see your The example below explains this for a
BDM for details) New Build residential house:
Professional Consultant Certificate – in the – Purchase price of the property: £120,000
absence of a valid warranty, – Incentives total: £8,000
we will accept a Professional Consultant – Incentives to be deducted from purchase
Certificate from a suitably qualified price: £8,000 - £6,000 (5% of
professional, if provided in the format purchase price) = £2,000
–R
educed purchase price: £120,000 -
£2,000 = £118,000
10Portable and proportionate incentives, Minimum loan amount
such as carpets and curtains, along with
£10,000 (or that set by the individual
other financial incentives such as support
product, whichever is greater)
with up-front costs such as Stamp Duty,
legal fees or cashback or enhanced part
exchange terms can be accepted in the Offer validity
5% allowance Mortgage offers are valid for 6 months,
Non-standard items such as an upgraded but an extension can be requested at any
kitchen or integrated appliances can be point within the initial 6 month offer period.
accepted as an incentive but do not need If granted, customers could have a total
to be included in the 5% allowance. It offer period of up to 12 months. This will be
will be the responsibility of the valuer to subject to the confirmation of a successful
decide which incentives are included in credit search and property valuation.
the calculation
To comply with the requirements of the Specialist support
Help to Buy schemes, customers must still Dedicated New Build underwriting and
fund a 5% deposit themselves support team
Lending is based on the lower of the We are geared to meet the required speed
purchase price of the property or the to offer for 28-day exchange deadlines
property valuation
Our BDMs are well versed in dealing with
housebuilders, keeping them up-to-date
Part exchange with the progress of an application
Where a housebuilder buys the property
off the applicant and then re-sells it on
the open market. It enables the applicant
to sell their existing property quickly so
that they can proceed with the purchase
of their New Build property. This IS
classed as a scheme, so cannot be used in
conjunction with any other scheme such
as Help to Buy
Assisted move
Where a housebuilder will typically pay the
fees for two local estate agents to market
the applicant’s existing property for a
quick sale enabling them to proceed with
the purchase of their New Build property.
This is NOT classed as a scheme but as
an incentive, so the applicant can use a
scheme such as Help to Buy to purchase
their New Build property
1112
Submitting an application
Here’s a step-by-step guide on how to submit an application to us.
If there’s anything you’d like to check, feel free to chat to us on
LiveTALK at intermediary.natwest.com
Register with us Submit supporting documentation
Go to intermediary.natwest.com and verification of ID (if required)
Click on ‘Register now’ and complete the Please refer to our Packaging Requirements
registration form guide for details of supporting information you
need to submit.
We will then email you your log in details
ONLY
FOR US
E BY MO
RTGAG
E INT
ERMED
IARIES
Submit an application online NatWe
st In
Packa termediary So
ging r lu
You can submit an application via our website equire tions
ments
or the MTE
For technical help with a submission please go
to LiveTALK
Once you have submitted an application you If you have submitted the application via our
will be able to monitor its progress on our website, you can utilise our Direct Upload portal
online Mortgage Application Tracker tool to submit supporting documentation. Please
Check if we have electronically validated the select ‘Packaging Requirements’ from the
applicant’s ID – if not, please supply the ID summary header and case-specific packaging
documents we require guidance will be displayed.
If you have submitted an application via The option ‘Proceed to Upload Documents’ will
our website, you can access the Mortgage be presented below the packaging guidance text.
Reference Number in two ways: Click on that and you will be able to upload PDFs
and JPEGs up to 10MB in size.
a. it will appear alongside your client’s
details on the web site For MTE users, please continue to email the
supporting documentation, ensuring that the
b. y
ou will receive an e-mail in real time Mortgage Reference Number is in the email title.
following the submission of the application Send to intermediarydocs@natwest.com.
Whether you are submitting the application to us
via our website or through MTE, you do not need
to certify the documents that you send to us.
1314
Post-submission
Day 1 valuation instructions Concierge service
Valuations for purchase and remortgage Mortgage applications over £500,000,
applications, up to £500,000, are will be assigned a dedicated case
instructed on ‘Day 1’, when an application handling manager
is submitted They will oversee each case through the
This enables the underwriting and application process from submission of the
valuation processes to run concurrently initial application to when the first direct
The offer will be issued once both debit payment is taken
processes have been completed The dedicated case-handling manger will
successfully contact the broker directly with updates
The fee for the valuation for a purchase on the progress of the application and to
mortgage will be debited from the address any issues with it such as chasing
customer’s payment card usually within up missing information
24 hours This contact will commence with the
We will provide a customer with a full broker receiving an email from the case-
refund if their application is declined on the handling manager with the Mortgage
grounds of affordability or credit scoring Reference Number and their contact
or where we cannot lend the full amount details and also a welcome call with any
requested due to affordability issues additional information required and an
outline of the next steps
Free of legal and valuation fees for a
standard remortgage* The case-handling manager will also liaise
with our Mortgage Lending Unit on issues
Provided that all the correct supporting concerning the application
documentation is submitted on time to
enable our underwriters to fully assess the
application, we expect the average speed
to offer for the majority of cases to be
around 14 working days
*We won’t charge your customer legal and valuation fees for a standard remortgage. There may be instances
where they do not qualify for this. Please speak to your BDM if you require any information in this regard.
15Where to go for help
Your BDM
The average
Name:
number of years
Phone: experience that our
BDMs have in the
Email: mortgage industry
The average number
of years experience in
the mortgage industry
that members of our
LiveTALK team have
Help with pre-submission Use LiveTALK for :
applications Registration/password queries
We are happy to help you with queries Queries on criteria for new applications
about customer applications on LiveTALK, Queries about using the website
our instant messaging service at
intermediary.natwest.com. And, get a transcript of your
conversation
Help with existing applications
03459 00 11 10 For help with:
Checking receipt of supporting documentation
Call our dedicated
Providing updates on underwriting decisions
intermediary mortgage
processing centre on Managing valuation instructions
our local rate number Confirming mortgage offer issued
Extending mortgage offer term
Confirming completion dates
Use our online Mortgage Application Tracker to monitor progress of
your customers’ applications
For more information go to intermediary.natwest.com
NWIS 20 March 2019You can also read
