Mortgage Declined By NatWest? Here’s What To Do Next.

If you’ve recently been declined for a mortgage with NatWest, don’t feel too disheartened, as it doesn’t mean all other mortgage lenders will come to the same conclusion. 

A large high-street lender such as NatWest can afford to have stricter lending criteria than others, and each application will be vetted using an automated decision-making process. If your application doesn’t quite fit within NatWest’s lending guidelines, you’ll likely receive a frustrating ‘computer says no’ response. 

The good news is your mortgage journey is not necessarily over because of one rejection. We work with lots of specialist mortgage lenders who assess each applicant on a case-by-case basis using human underwriters. This method allows far greater flexibility for accepting applications that might not seem ‘perfect’ when viewed by a computer. 

In this guide, we’ll outline some of the main reasons why NatWest would decline a mortgage application, what steps you can take to improve your chances when you re-apply and how Haysto can help make your mortgage possible when other brokers can’t. 

Why NatWest might decline your mortgage application

In general, there’s two overarching reasons why NatWest could decline your application: 

• You haven’t provided enough evidence to satisfy NatWest’s affordability checks and prove your income can cover the monthly mortgage repayments for the amount you want to borrow (this can be a particular issue if you’ve recently become self-employed, for example).  

• Your credit score is too low, typically caused by one or more bad credit issues registered on your Credit Report and/or you’re not registered on the electoral roll at your current address. 

More specifically, your mortgage application could be declined by NatWest because of the following: 

• A County Court Judgment (CCJ) was registered on your credit record within the last three years

• You’ve paid into a debt management plan (DMP) during the last six years

• You want to apply using a guarantor

• You want to apply on a joint borrower sole proprietor basis

• The property you want to buy is located in the Channel Islands or the Isle of Man

• You rent a room in your house to a lodger and have used this income as part of your overall yearly earnings

• You want to place the property you’re looking to buy into a trust

• You’re using retained profits from your business as your main source of income

• You’re a self-employed applicant and your business has made a loss in the last accounting year

• You need a mortgage to build your own property (self-build project)

In addition to the above, NatWest will decline mortgage applications for particular property types, such as mobile homes, houseboats, commercial B&Bs, guest houses and non-habitable or part-renovated properties (without a working kitchen or bathroom). 

(Source: Criteria Brain )

What steps you should take next

If NatWest has rejected you for your mortgage, the one thing you mustn't do is rush in and reapply straight away with other mortgage lenders, expecting a different outcome. 

Applying for a mortgage will show on your Credit Report but won’t show if you were accepted or declined. However, multiple hard search mortgage applications in a short period of time will indicate to a lender that you’ve been rejected and lower your credit score, making it harder to be approved. 

This is why it’s essential to take your time and follow these steps to give yourself a better chance of getting the mortgage you need: 

• Find out why NatWest declined your mortgage. Speak to NatWest and establish why your mortgage was declined and what the circumstances were that led to this decision. If the reason given is specific to NatWest’s lending criteria (you’ve had a DMP in the last six years or you’re looking to build your own property, for example), you can then search for lenders who will accept these requirements. If it’s a credit issue, take some time to repair your credit score before reapplying. 

• Speak to a mortgage broker. Once you know the issue that led to your application being rejected by NatWest, the smart next move is to seek the help of an experienced mortgage broker. Your broker will be able to help rebuild your application and identify lenders who will look more favourably on your case. 

• Apply with the right lender. Taking the time to fix whatever issue led to your application being rejected now puts you in a much stronger position to get the mortgage you need. With your broker’s assistance, you can now reapply with a lender whose criteria are better suited to considering your case. 

How Haysto can help make your mortgage possible

Haysto has a proven track record of securing mortgages for people rejected by mainstream lenders, such as NatWest. That’s because we know that automated decision-making simply doesn’t work for most complex issues, and everyone’s circumstances are different. 

A rejection from one lender doesn’t mean all others will do the same. In many cases, the difference between getting a mortgage or not can depend on choosing the right lender most suited to your specific requirements. 

We work closely with several specialist lenders who help people in similar situations every day. These lenders prefer a more human approach to assessing an application rather than a computer-based checklist, giving you a better chance of success. 

All you have to do is make an enquiry and a member of our mortgage team will be in touch to get started.