When assessing affordability, Mortgage Solutions understands NatWest is now using the lower of the average of the last two-years’ net profit; the most recent year’s net profit or the confirmed government income support amount.
Changes apply to applications that have already been submitted but not yet completed where the broker or borrower informs NatWest of a material change to the application.
However, the bank is not expecting advisers to proactively review their pipeline.
NatWest has also made some temporary changes to its self-employed packaging requirements for new business.
A supplementary information sheet is required as part of the packaging when submitting an application where one or both of the applicants are self-employed.
Applications without a sheet will not be progressed.
If income does not satisfy on-going affordability at underwriting stage, Mortgage Solutions understands NatWest has said it will decline the case and will not accept appeals.
And where a borrower’s income has been negatively impacted by Covid-19, and they are not eligible for Self Employed Income Support Scheme with their revised income failing affordability, NatWest said brokers should not submit applications.