NatWest changes self-employed mortgage acceptance criteria

by Aaron Strutt

May 15 2020

NatWest has made temporary changes to the way it assesses self-employed residential and buy-to-let mortgage applications.

NatWest has introduced a supplementary form asking self-employed borrowers to provide their two years most recent accounts or two years full and final or submitted tax returns. They will also need three months of personal bank accounts and three months of business bank accounts. 

If applicable – a government letter confirming successful application for the self-employed Income support scheme – this must be the final letter which confirms the amount payable. 

When assessing mortgage affordability NatWest will use the lower of the average of the last two years net profit, the most recent years profit or the confirmed government income support amount. 

Aaron Strutt, product director at Trinity Financial, says: “More of the lenders are asking self-employed borrowers to provide additional bank statements but they are still providing mortgages. They are looking at the clients overall financial situations and working out ways to provide finance. 

“NatWest has highlighted that business owners will need to demonstrate their on-going mortgage affordability to get their applications agreed. They want to know if the applicant expects their income to change and if their business has either had self-imposed or dictated changed by the
business sector they work in."

If borrowers are not eligible for the government Self Employment Income Support Scheme and their revised income fails affordability assessment, the bank will not be able to assist at this time.

Call Trinity Financial on 020 7016 0790 to secure a self-employed mortgage