Anyone know what NatWest’s current LTI ratio is and also updated stance on furlough applicants

SB1990

Does anyone now what NatWest’s current LTI ratio is at the minute? Also their stance on partial furlough mortgage applicants? 

We already got our offer in December but it looks as though our purchase has fallen through due to issues further up chain meaning our seller doesn’t want to get sell now. We know that if we find something else similar in price it will be a simple case of completing a ‘change of property’ form and paying for another valuation/survey. The only annoying thing is is that since we got our offer my partner has been put on partial furlough so doing 2 or 3 days each week - the company is not in trouble they are just using the scheme simply because it’s there to use. With it being 2-3 months since we got the offer I’m worried once we do a change of property form they’ll request more payslips and see that my partner is partially furloughed. I’m about £11,000 shy of being able to afford the whole mortgage on my own if the LTI is about 4.25 so I’m wondering if it’s likely Natwest will still accept my partners partial furlough pay which would still cover it then. 

Any advice much appreciated 

[Deleted User]

They dont take any portion of income if there is furlough showing on it.  They need a full payslip to show no furlough pay even if they have returned to work already.  

Their calculator is here if you want to check it fits on your salary alone 
https://rbsintermediaries.hdddirectsolutions.co.uk/Natwest

SB1990

Ok thank you, and are you aware of which lenders are excepting partially furlough applicants at the minute? As this looks like we will have to change lender now (and pay the exit fee unfortunately).

K_S

@sb1990 You might be better off (in the first instance) looking to see if there's a lender who will lend what you need based on your income alone.

The NatWest LTI matrix -

chasingfreedom

Deleted_User said:

They dont take any portion of income if there is furlough showing on it.  They need a full payslip to show no furlough pay even if they have returned to work already.  

Their calculator is here if you want to check it fits on your salary alone 
https://rbsintermediaries.hdddirectsolutions.co.uk/Natwest

Hi Deleted_User, sorry to jump in but saw your message and had a quick look. Is that the actual calculator they use within Natwest for affordability? I recently applied via a broker and got an AIP from Natwest for a 200k property and we'd requested 10% deposit and they came back saying they wanted 15% because of our outgoings. When I enter my figures into that calculator it says 286,000. Does that mean that based on our figures that is what they would potentially lend us? If so, why did they request the higher deposit? and do you think if it says that based on our salary we would have a hope of using the new government mortage guarantee scheme for 95% LTV? (I entered 95% on the calculator) Lots of questions, sorry!! 

Rosemary1982

I had a mortgage offer with NatWest as a sole applicant last week just under 5 x my salary and I have a dependent but v good credit and no other outgoings such as loans / credit cards etc 

bigkenny1975

I've just had a mortgage offer from NatWest, because my wife was training and on a bursary before her current job they said she had only had continual employment for 5.5 months. They tried for my salary alone but it was just shy of the level needed for the mortgage, they checked on 5 times salary when they did this. In the end they agreed an exception for the application as it was only two weeks.

[Deleted User]

chasingfreedom said:

Deleted_User said:

They dont take any portion of income if there is furlough showing on it.  They need a full payslip to show no furlough pay even if they have returned to work already.  

Their calculator is here if you want to check it fits on your salary alone 
https://rbsintermediaries.hdddirectsolutions.co.uk/Natwest

Hi Deleted_User, sorry to jump in but saw your message and had a quick look. Is that the actual calculator they use within Natwest for affordability? I recently applied via a broker and got an AIP from Natwest for a 200k property and we'd requested 10% deposit and they came back saying they wanted 15% because of our outgoings. When I enter my figures into that calculator it says 286,000. Does that mean that based on our figures that is what they would potentially lend us? If so, why did they request the higher deposit? and do you think if it says that based on our salary we would have a hope of using the new government mortage guarantee scheme for 95% LTV? (I entered 95% on the calculator) Lots of questions, sorry!! 

if they requested a higher deposit you probably didnt pass the credit scoring at 10%.  90% ltv credit scoring is super tough at the moment and I've had cases with Natwest and other lenders where they are getting declined at 90% for no apparent reason.   Not a complete loss as its so variable across the industry at the moment so just because NatWest ask for 15% deposit doesn't mean everyone else will

And yes, this is the same calculator that the underwriters use within Natwest. They aren't a lender I have ever had an issue with them changing the calculated amount after application. The automate so much of the info so if the calculator shows 1 amount and the application only offers another its usually due to an error in how the income or expenditure was calculated.  

It doesnt sound like your affordability is what caused your ltv limit. The only other possibilities would be credit scoring, or property type. 

I cant imagine the 95% scheme being any easier on the credit scoring.  Just because the lender can protect themselves financially from a portion of the losses doesnt mean they want to be getting involved in arrears or reposessions.  If nothing else its just really bad press to be taking someone's home off them, even if the bank doesnt lose money.   So no,  I dont think it will be easier at 95% (just my opinion though)

[Deleted User]

Natwest have different LTI caps at different LTV brackets so there isnt just one answer to the question

chasingfreedom

Deleted_User said:

chasingfreedom said:

Deleted_User said:

They dont take any portion of income if there is furlough showing on it.  They need a full payslip to show no furlough pay even if they have returned to work already.  

Their calculator is here if you want to check it fits on your salary alone 
https://rbsintermediaries.hdddirectsolutions.co.uk/Natwest

Hi Deleted_User, sorry to jump in but saw your message and had a quick look. Is that the actual calculator they use within Natwest for affordability? I recently applied via a broker and got an AIP from Natwest for a 200k property and we'd requested 10% deposit and they came back saying they wanted 15% because of our outgoings. When I enter my figures into that calculator it says 286,000. Does that mean that based on our figures that is what they would potentially lend us? If so, why did they request the higher deposit? and do you think if it says that based on our salary we would have a hope of using the new government mortage guarantee scheme for 95% LTV? (I entered 95% on the calculator) Lots of questions, sorry!! 

if they requested a higher deposit you probably didnt pass the credit scoring at 10%.  90% ltv credit scoring is super tough at the moment and I've had cases with Natwest and other lenders where they are getting declined at 90% for no apparent reason.   Not a complete loss as its so variable across the industry at the moment so just because NatWest ask for 15% deposit doesn't mean everyone else will

And yes, this is the same calculator that the underwriters use within Natwest. They aren't a lender I have ever had an issue with them changing the calculated amount after application. The automate so much of the info so if the calculator shows 1 amount and the application only offers another its usually due to an error in how the income or expenditure was calculated.  

It doesnt sound like your affordability is what caused your ltv limit. The only other possibilities would be credit scoring, or property type. 

I cant imagine the 95% scheme being any easier on the credit scoring.  Just because the lender can protect themselves financially from a portion of the losses doesnt mean they want to be getting involved in arrears or reposessions.  If nothing else its just really bad press to be taking someone's home off them, even if the bank doesnt lose money.   So no,  I dont think it will be easier at 95% (just my opinion though)

Thanks again. Our credit scores (according to experian and equifax) are both good. The only issue I could potentially see is our credit card utilisation percentage being quite high, do they look at that? (We've closed several cards accounts as we've cleared them). Are there any other lenders who may be more lenient?