Additional Borrowing

Additional Borrowing guide

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ONLY FOR USE BY MORTGAGE INTERMEDIARIES

We do additional borrowing for customers who want to borrow more on their existing mortgage for an agreed purpose such as home improvements.

On this page

Why choose NatWest?

Additional borrowing eligibility

Application Process

Packaging requirements

Valuations

Procuration fees

FAQs

Application updates and help

Next steps

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Why choose NatWest?

NatWest existing mortgage customers may be able to do additional borrowing. It’s a quick and easy process. The new borrowing will be secured against their home. Longer terms are available which could be more affordable for many customers. If your customers existing mortgage deal is expiring/expired they can apply to have their current mortgage and the new borrowing secured under one mortgage deal making it easier to manage one payment.

Additional borrowing eligibility

Customers must have a mortgage with NatWest.
They must be resident in the UK.
They must be up to date with their current mortgage payments.

Only available through intermediaries if applied for in conjunction with a Product Transfer. When within the 6 month Product Transfer window period.

Minimum additional borrowing: £10,000.
Maximum additional borrowing: £500,000.
Maximum LTV: 90%.

Where the customer is using the any funds for Debt Consolidation, maximum LTV: 80%.

Maximum age – 75 at the end of the term.
Maximum term – the term can be from 3 years to 40 years.

Any additional borrowing must be taken on Capital and Interest Repayment.

The customer would need to contact us directly if they want to do additional borrowing in the following instances:

After their first repayment but not within the Product Transfer window.
Where your customer is looking to apply for standalone additional borrowing they can do this direct with us by visiting Manage Your Mortgage or by using their on line banking app. They can apply as early as after the 1st months payment on their new mortgage.
Buy-to-Let additional borrowing.
Customers whose mortgage is in arrears.
Customers with more than five sub accounts.

Application Process

How to apply for additional borrowing:

Our Lending Decision

Once you submit the application you’ll receive one of the following lending decision messages:

Decline- This can’t be appealed. If your customer wants to proceed with the standalone product transfer, you will need to rekey the product transfer application online.
Refer or Accept- If you receive either of these messages you need to send in full packaging for underwriter assessment. If the additional borrowing is declined by the underwriter but your customer wants to proceed with the standalone product transfer application, please call the Business Development team who can assist you with this.

Please note that for any additional borrowing requests over £50,000 you will always receive a refer message.

Next steps after submission

2. Once submitted, please email the Packaging to intermediarydocs@natwest.com.

Note - Any fees associated with the loan will be requested by the Underwriter.

3. Where the case is agreed by our underwriter, an offer for the additional borrowing amount will be emailed to your customer (you will receive a copy) which they need to electronically sign to accept.

4. Once accepted, the funds will be available for release to the customer within 48 hours or they can specify a date after the 48 hour window.

5. The Additional Borrowing sub-account will go live once the funds have been released, this will happen prior to the new Product Transfer rate going live.

6. Once the funds have been released, we will then send the customer the Product Transfer offer (variation agreement) which they need to electronically signed within 14 calendar days. A copy of this will also be emailed to you.

7. After the acceptance has been received, the new rate will take effect either when the existing fixed rate expires, or where the existing rate has already expired as soon as possible after receipt.

Where there is more than one sub-account switching with different product expiry dates, these will be keyed as separate applications. We’ll send the paperwork for the sub-account that is due to expire first and once the rate is live on that relevant sub-account, we’ll then send the paperwork for the next sub-account(s).
The customer will still only make one monthly repayment by Direct Debit and we will write to advise them how much their new combined monthly payment is and when it will be due.
Note - The Additional Borrowing will be keyed first and only once funds have been released, will the Product Transfer application be processed.

Packaging requirements

Our Packaging Requirements for additional borrowing are the same as those for new business applications.

Where additional borrowing is being raised for home improvements we may require additional information. Please see Home Improvements on our A-Z.

Send additional borrowing supporting documents with the customer’s existing mortgage account number in the email to: intermediarydocs@natwest.com.

Valuations

We’ll use a variety of valuation tools to get an up-to-date valuation.

For loans over 350k or above 60% - If we need to instruct a valuation this will be at the bank’s expense.
For loans under £350,000 and below 60% LTV - We’ll use the House Price Index valuation.

Procuration fees

You’ll be paid a procuration fee for additional borrowing.

The additional borrowing and the product transfer will be processed separately.

The procuration fee (minimum £250) for the additional borrowing will be paid first, once the funds are released.

Please see Procuration Fees.

FAQs

What rate will the additional borrowing need to be taken on?

Can a customer take out additional borrowing and switch products on behalf any joint party?

Can I save the application part way through and come back to complete at a later stage?

How can the customer pay the product fee?

Any product fees due will be payable during the Additional Borrowing process. This will be requested by the Underwriter, along with guidance as to how to do this.

If being paid up front: This will be requested by the Underwriter, along with guidance as to how to do this.
By adding it to the additional borrowing amount, interest will be payable on the fee along with the loan.

Where will the funds be sent to when they are released?

FAQs continued

Can my customer apply for additional borrowing if they have consent to let in place?

My customer has a Buy to Let mortgage and wants to do additional borrowing. Can they do this?

Can additional borrowing be applied for where the customer is on a Help to Buy mortgage?

If the additional borrowing has been drawn down, however the product transfer has not yet taken effect, can my customer change the rate?

My customer wishes to cancel the additional borrowing and progress with the product transfer only, what are my options?

FAQs continued

Why on the Lending decision page do I see the following error ‘Error occurs while communicating with credit decisioning application’?

When using address finder tool to find either the customers property or employer’s address and there is a house name, instead of a house number, please you check the details have populated correctly in the fields, before pressing "Save Address". Particularly where the house "name" has defaulted into the house "number" field etc.

Should you continue to have issues, please Contact Our BDA team.