What To Do If NatWest Have Refused Your Mortgage

A declined NatWest mortgage application doesn’t have to mean the end of your property purchase aspirations. Find out how a broker can get your mortgage aspirations back on track.

Firstly, have you had a mortgage declined in the last 12 months?

Home Mortgage Application What To Do If NatWest Have Refused Your Mortgage

Author: Pete Mugleston

Mortgage Advisor, MD

Updated: March 13, 2024

In this article, we’ll explain what to do if NatWest has rejected your mortgage application, why this may have happened and how a broker can help get the approval you need.

How strict are NatWest as a mortgage lender?

NatWest’s mortgage approval rate is in line with most high street lenders in the UK, in the sense that they carry out thorough eligibility checks and due diligence around affordability and usually reject applications that fall outside of set criteria.

They can be stricter than some mortgage lenders on specific eligibility requirements, such as where bad credit is involved. For example, they don’t usually offer mortgages to customers who have (or have had) debt management plans as well as unsettled payday loan debt.

Their mortgage approval rate is in line with most high-street lenders in the UK, in the sense that they carry out thorough eligibility checks and due diligence around affordability and usually reject applications that fall outside of set criteria.

What is the timescale for a NatWest mortgage application?

With a high street lender like NatWest, it will typically be around two weeks after you’ve submitted your mortgage application before you can expect a full mortgage offer. This timeframe will likely increase if the application is complex due to factors like bad credit or a non-standard property type.

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What to do if they have declined you for a mortgage

If NatWest has turned down your mortgage application or you fear this is about to happen, here are three steps you can take to help keep your homeownership plans on track…

  1. Don’t re-apply straightaway
    Although there will be a burning temptation to lodge another application straightaway, bear in mind that too many requests for finance in a short space of time can negatively impact your credit report. But speaking to a mortgage broker who knows exactly the right lender to approach and how long to wait before you approach them could make a world of difference.
  2. Find out exactly why NatWest said no
    Gathering all of the facts surrounding your rejection will help you prepare a solution for whatever issue NatWest found the next time you apply. Ask for a copy of the surveys if a problem with the property was the reason. You should also download your credit reports to make sure they’re fully up to date, regardless of whether bad credit was behind the rejection, as this could boost your prospects the next time you apply and give you an idea of what NatWest saw when they looked into your credit history.
  3. Make an enquiry so we can match you with the right mortgage broker
    The smart move in the aftermath of a mortgage rejection is, contacting a mortgage broker. Professional advice can often be the best way forward in a situation like this, whether that’s with NatWest after some renegotiation or another mortgage lender who’s better positioned to offer you a more favourable deal. After reviewing your needs and the circumstances surrounding your application, we’ll swiftly match you with a fully-vetted mortgage broker.

Can you appeal the decision?

Yes, you can usually appeal straight away. This can normally be done either online or via email to the appropriate department (this information is typically found on the lender’s website, with instructions as to how to follow the correct procedure).

It’s probably best to wait until you have all the details as to why this happened and then consider all of your options before lodging an appeal.

Get expert advice immediately if…

  • You have 5% deposit
  • You have some form of bad credit
  • You are changing jobs, or recently changed jobs
  • You have used payday loans in the past
  • You are purchasing a non-standard property
  • You have been declined and aren’t sure where to apply next

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Common reasons why NatWest decline mortgage applications

‘Severe’ bad credit

NatWest can be strict regarding bad credit under certain circumstances. For instance, it can be tricky getting accepted with a county court judgement (CCJ), and customers in debt management plans are usually rejected outright. It’s a similar story for would-be borrowers with defaults, as NatWest typically classifies this type of credit problem as “severe” and may even decline a mortgage after the agreement in principle (AIP) stage if evidence comes to light during underwriting.

Recently started a new job

If you’ve landed a new job and want to take out a mortgage based on the salary you’ll be earning, there’s a chance that this will not pass NatWest’s underwriting criteria as they’d usually need at least one actual payslip as proof of what you’re earning. The same rules apply if you’ve just gotten a pay rise or a promotion and need to borrow based on your increased wages.

Payday loan use

The vast majority of mortgage lenders dislike payday loans, and this is certainly true of NatWest, who will decline a mortgage application from anyone who’s currently paying one off. NatWest will only consider you for approval once the debt is cleared.

Declined after valuation or other issues with the property

NatWest won’t lend for properties with non-repaired prefabricated reinforced concrete and Buildoffsite Property Assurance Scheme (BOPAS) accreditation is needed for anything classed as ‘non-standard’ construction. It might also be that the property type was the reason – they don’t lend on modular homes, for example.

It’s not uncommon for applicants to receive their mortgage in principle only for NatWest to withdraw from the process due to issues with their valuation. This is due to their assessment of the risk-taking on an over-valued property being too great, based on the loan-to-value involved.

Other reasons

There are a number of other reasons why NatWest might turn down a mortgage applicant, such as:

  • You’re over the age of 72 at the point of application
  • There is evidence of previous unsecured loan arrears
  • You’re looking to let out a room in the property via Airbnb or similar
  • You’ve submitted a mortgage application with a guarantor
  • The property you want to buy has occupancy restrictions

Whatever the reason, speaking to a specialist broker will give you the best chance of finding a solution and reviving your mortgage plans.

How long does it take to re-apply for a mortgage?

This all depends on the reasons why you were initially declined by NatWest. If, for example, you have severe adverse credit on your record or there’s an issue with the property valuation then this may not be something that can be rectified quickly.

But, if it’s something quite straightforward or specific to this lender’s criteria, there’s a good chance you can consider re-applying straight away.

Once you know why you’re application was rejected you can then take steps to resolve these issues thoroughly. When this has been done, with the help of a mortgage broker, your new application should hopefully take as long as is standard to process and get the approval you need.

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How Online Mortgage Advisor Can Help

If you’ve had a mortgage application declined by NatWest or fear that they’re going to reject you, it’s easy to get discouraged, but keep in mind that help is available. The right mortgage broker will have the expertise to bring your application back from the brink, or even find you an alternate lender who’s more likely to approve you for the mortgage you need.

We offer a free broker-matching service that will take your needs and circumstances into account and match you with the ideal broker. This will be a vetted advisor with the knowledge and experience to get you the best mortgage available, whether that’s a renegotiated deal with NatWest or a fresh agreement with another lender who’s better positioned to help you.

Call 0808 189 2301 or make an enquiry online and we’ll pair you up with a mortgage expert who helps people who’ve been declined previously. Remember, speaking to them as soon as possible is the best way to turn that rejection into a mortgage approval.

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NatWest will refund the valuation fee in full if your mortgage application was declined for any reason besides an issue directly related to the valuation report.
If, however, a problem flagged up during the valuation was the reason, then the customer will not usually qualify for a refund.

Yes, NatWest is willing to consider mortgage applications from customers with a gifted deposit from either a member of their family or a close friend.

With deposits gifted from friends, they will only approve the mortgage if repaying the gifted funds is not necessary and will expect the friend to put this in writing. They will also need to state that they will have no interest in the property.

They might reject a mortgage application if a history of excessive gambling comes to light during the underwriting checks, but there’s no ‘one-size-fits-all’ definition of ‘excessive’ gambling that applies across the board.

Most likely, NatWest will decide whether this is a deal-breaking issue based on the overall strength of your application. There might also be other mortgage providers with a higher appetite for risk who will consider lending to you despite your gambling activity.

At this late stage, it’s not too late to seek professional advice from a broker and double-check that you’re happy with the terms of the agreement. If you are 100% happy with what NatWest is offering, you can sign the contract and your solicitor/conveyancer will move the deal onto the next phase, which is the exchange of contracts, followed by completion.

If your circumstances have changed since you originally applied with NatWest, it’s important to let them know, otherwise, the contract you’re signing could be void. You’ll also need to make sure your deposit funds are available, along with the funds that you agreed to for any additional costs and fees, including stamp duty.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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