You are here: Home - Mortgages - Remortgage - News -

Blow to self-employed as NatWest stops lending to government grant recipients

Written by: Lana Clements
NatWest has pulled the plug on mortgages offered to those who receive the Self-Employment Income Support Scheme (SEISS) grant.

Since 14 July anyone applying for the government help has had to confirm their business has been impacted by Covid-19.

As such, the bank is now declining income that has come from a business in receipt of the grant over the last four months.

The bank said: “At this time our primary purpose remains to ensure that any mortgage we provide to customers is affordable.”

NatWest is also tightening its residential affordability assessment.

In a message to advisers, the lender said it was making a change to background affordability calculations “to ensure we continue to lend responsibly when assessing customers’ current and future mortgage eligibility”.

It warned: “As a result of the affordability changes, there may be a reduction in the maximum lend compared to previous affordability assessments.”

The changes come after the lender last week toughened buy-to-let affordability calculations, while changing its interest-only mortgages.

Rate changes and reintroduction of free valuations

NatWest has also increased rates by up to 20bps across its core remortgage range, while pushing up rates by to 20bps and 19bps on selected two and five-year deals at 70% loan to value (LTV) and above respectively.

Rates are falling on the product switch range by five bps on two-year 60% LTVs.

The lender is also reintroducing free valuations for intermediary purchase products.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week