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What to do if Natwest Have Refused You For a Mortgage

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 27, 2021


Natwest is a good, well-respected mortgage provider but no lender in the UK is able to accept every single application they receive. The aim of this article is to help you understand what your options could be if your mortgage application has fallen outside of Natwest’s lending criteria.

Don’t scrap your homeownership plans just yet. The expert brokers we work with could offer you a lifeline.

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Have you had a mortgage application declined by Natwest? Or maybe you feel certain they’re going to knock you back and put the kibosh on your homeownership plans? Either way, we’re here to help!

We’d like to start by reminding you that an unsuccessful mortgage application with Natwest is far from the end of the road for you and your dreams. A mortgage broker with the right expertise could offer you a lifeline, whether that’s in the form of an even better deal with a different mortgage provider or a second chance at approval from Natwest after some renegotiation with them.

5 reasons why Natwest decline mortgage applications

1. You don’t have enough deposit
At the time of writing, the maximum loan to value (LTV) ratio for a Natwest mortgage is 90%, which means you’ll need at least 10% deposit or they will likely decline you. This has left many first-time buyers and people with low deposits out in the cold, and if you’re one of them, don’t throw in the towel just yet. It may be possible to get a mortgage with less than 10% deposit elsewhere.Allow us to elaborate: there are a few ways to get a mortgage with less than 10% deposit. One way would be through a guarantor mortgage.

If you’ve got a parent or family member who’d be willing to put up their savings or a property they own (and hold enough equity in) as security for the debt, a guarantor mortgage could help you get onto the property ladder with no deposit at all.

Natwest don’t offer guarantor mortgages, but we can introduce you to a mortgage broker who specialises in them and knows exactly which alternative lender to approach for one.
Not everyone is lucky enough to have a family member who’s willing to put their finances on the line, but the good news is that a minority of lenders are still offering mortgages for customers with just 5% deposit, under the right circumstances. These lenders are tricky to find unless you know the market, but luckily, the brokers in our network have deep relationships with them and might be able to convince one of them to offer you a 95% LTV mortgage, even if Natwest have said no.

2. You have ‘severe’ bad credit
Natwest can be strict about bad credit under certain circumstances. For instance, it can be notoriously tricky getting a Natwest mortgage with a county court judgement (CCJ) on your file, and customers in debt management plans are usually rejected outright. It’s a similar story for would-be borrowers with defaults, as Natwest typically classes this type of credit problem as “severe” and may even decline a mortgage after the agreement in principle (AIP) stage if evidence of it crops up during underwriting.

If Natwest has told you that you can’t get a mortgage because of bad credit, this can be a real setback, but keep in mind that fallback options could be available.

Although Natwest consider issues like defaults and debt management plans to be deal-breakers, there are lenders who don’t, and with the right advice, it could be possible to salvage your homeownership dream with another provider. Luckily for you, we work with specialist bad credit brokers who help people get a mortgage with all kinds of bad credit every day.

They know exactly which mortgage providers have the flexibility to base their lending decision on the age, severity and reason for your bad credit, and remember, Natwest having declined you once might not be an issue if you find the right lender the second time around.

3. You’re due to start 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 fall afoul of 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 want to borrow based on your increased wages.

If Natwest has turned you away on these grounds or you’re worried that they might, we’ve got good news for you: there are other mortgage providers who consider lending based on a salary the customer is due to earn in an impending new job or after an upcoming pay rise.

These lenders like to see evidence of your new salary and prefer the new role to be starting in the next three months. Natwest does, however, offer mortgages for customers in a probationary period, so it’s a good idea to speak to a broker about whether to renegotiate with them once you’ve started your new role, depending on how much time you have. Either way, speaking to an advisor can help you make the right decision and boost your chances of mortgage approval under your current circumstances.

4. You’ve used a payday loan
The vast majority of mortgage lenders dislike payday loans, and this is certainly true of Natwest, who will decline a mortgage application from anyone that is currently paying one off. Natwest will only consider you for approval once the debt is firmly in your rearview mirror, and even then you’ll be subject to intense underwriter scrutiny since questions will be raised about your money management.

If you’ve ever used a payday loan, this doesn’t mean your hopes of ever getting a mortgage are dead in the water, but it does mean that Natwest isn’t necessarily the right lender for you, and if they’ve turned you down, this might even be a blessing in disguise. There are a small minority of lenders who don’t have such a hardline stance against payday loans, taking things like the date you took out the debt and the reason you had to fall back on it into account before assessing your application.

In theory, you’re more likely to end up with a good deal from a lender who isn’t as strict on payday loan usage as Natwest, and a mortgage broker with the right expertise will know exactly which providers this applies to. Here’s the bottom line: it might be possible to get a mortgage if you’ve ever used a payday loan, but advice from a broker is a must if you’re applying under these circumstances.

5. There’s an issue with the property
Natwest might decline a mortgage application after the valuation stage if an issue with the property comes to light. This could be due to the way it was constructed. For instance, 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 culprit – they don’t lend on modular homes, for example.

Some people end up with a
Natwest mortgage approved subject to valuation, only for the deal to collapse late in the day when the final survey checks have come back.
Although it was no doubt disappointing to hear that Natwest won’t offer you a mortgage at the 11th hour, remember that there’s a vast market out there, and not all lenders have the same stance on non-standard properties. In fact, with the help of a broker who specialises in unusual properties, it might be possible to get a better mortgage deal than you ever thought possible.


If you’ve been offered an agreement in principle by Natwest but fear your application could be declined before completion, it’s not too late to take a timeout to seek professional advice. The right mortgage broker can tell you if sticking with Natwest is your best option and search the market to check whether there’s a more suitable lender out there

What if you’ve been declined because of something else?

We can still help you out. Just because the reason for your rejection from Natwest isn’t listed here, it doesn’t mean the mortgage brokers we work with can’t boost your chances of acceptance the next time around. There are literally hundreds of reasons why Natwest might turn down a mortgage applicant. Maybe you fall outside of their upper age limits, made a simple error on your application or your deposit is from a source that Natwest don’t accept. Whatever the reason, speaking to a specialist broker will give you the best chance of finding a solution and reviving your mortgage plans.

What you should do next

If Natwest has turned down your mortgage application or you fear they’re about it, here are three steps you can take to help keep your homeownership plans on track…

  1. Don’t re-apply straightaway
    Hold your horses! 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 culprit.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.
    If you’re unable to gather the necessary documentation because time is of the essence, simply skip this stage and move ahead to step three below.
  3. Make an enquiry so we can match you with the right mortgage broker
    If you do only one thing in the aftermath of a mortgage rejection from Natwest, speak to a mortgage broker. Professional advice is the best medicine in a situation like this, and it also happens to be the best way to turn that rejection into an approval, whether that’s with Natwest after some renegotiation or another mortgage lender who’s better positioned to offer you the most favourable deal available.After reviewing your needs and the circumstances surrounding your Natwest application, we’ll swiftly match you with a fully-vetted mortgage broker. We’ll make sure you’re paired up with an advisor with the right expertise to give you the best chance of salvaging your mortgage plans.
    Using our free broker-matching service won’t cost you a penny, but it will dramatically improve your chances of getting the best mortgage deal available, even if Natwest rejected you outright.

Been declined by Natwest? The right mortgage broker could turn that rejection into a mortgage promise

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 than Natwest.

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 fresh agreement with another lender, one 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 by Natwest every day. Remember, speaking to them as soon as possible is the best way to turn that rejection into a mortgage approval.

Don’t scrap your homeownership plans just yet. The expert brokers we work with could offer you a lifeline.

  • Check mark Whole of market mortgage experts
  • Check mark FCA regulated
  • Check mark Rated 5 star on Feefo
Get Started


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.

Are Natwest strict with mortgages?

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 a set criteria.

They are stricter than some mortgage lenders where bad credit history is concerned and don’t usually offer mortgages to customers with issues like debt management plans and mortgage arrears, as well as unsettled payday loan debt.

Can I get a refund on my valuation fee if Natwest rejected my application?

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 culprit, then the customer will not usually qualify for a refund.

Do Natwest accept gifted deposits?

Yes, Natwest are 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.

Do Natwest reject mortgage applications because of gambling?

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.

What happens after Natwest issues my mortgage offer?

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 null and void before the ink is dry. You’ll also need to make sure your deposit funds are available, along with the funds that you agreed 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 OMA of course!

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Pete Mugleston

Mortgage Advisor, MD

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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