The lender told brokers that borrowers will now need to provide evidence of their income, most likely in the form of payslips.
Anyone who cannot provide this will be rejected by the bank with changes taking effect from 1 December 2020.
In a note to advisers, NatWest said the policy had been updated to ensure that it is “doing the right thing for customers”.
For borrowers who have partially returned to work the earned income is acceptable and can be used, however the furlough income is not acceptable and cannot be used.
Flexi-furlough is not accepted as NatWest said this is not consistent and not evidence of a sustainable level of income.
And all applications including those being re-keyed or seeing material changes submitted on or after 1 December for employed customers must adhere to the new guidance.
The move comes after the government recently extended the Job Retention Scheme until March 2021.