NatWest will no longer offer guarantor mortgages, mortgages with multiple applicants or regulated buy-to-let.
The lender will assess all new residential mortgages under the MMR rules from April 15.
Other changes include:
Lending in retirement – Proof of income beyond retirement age and details of financial dependents
Affordability – Four additional questions on application. No change to documentation required (except for lending in retirement – see above)
Debt consolidation – One additional question
Interest only – No change for customers moving home – they can keep their interest only amount. Additional borrowing must be on a capital and interest basis.
The additional questions concerning future affordability are:
1) Are there any loans or other commitments not yet due, which will become payable during the mortgage?
2) Based on the customer’s circumstances, do they have any other commitments that are out of the ordinary e.g. career-related qualifications or leasehold/ground rent charges?
3) Does the customer have any plans for the property which will affect their ability to pay this mortgage?
4) Are there any personal changes that will affect the customer’s ability to pay this mortgage e.g. change to job, changes to income or expenditure, changes to profits or family circumstances?
