NatWest Mortgage Review: Pros, Cons & Features

NatWest mortgages: at a glance

NatWest offers capital repayment and interest-only mortgages, and a range of mortgages which includes fixed and tracker rate options. NatWest mortgages can be taken out for a term of up to 40 years. You’re able to apply for a mortgage from NatWest online, over the phone, or in a NatWest branch. You can do the same, or use NatWest’s mobile app, if you need to contact customer support. 

It’s possible to overpay up to 20% of your remaining balance each year of a NatWest fixed-rate or tracker-rate mortgage without needing to pay an early repayment charge. 

NatWest mortgage pros & cons

NatWest mortgage overview

NatWest is the third largest mortgage lender in the UK according to UK Finance data, and offers mortgages to first-time buyers, home movers and existing mortgage borrowers who want to remortgage. 

NatWest mortgages are available for amounts of £25,000 and above, and for terms of between three and 40 years. Customer support is available online, over the phone, via the NatWest mobile app and in-branch. 

Product options	Capital repayment  Interest-only  Fixed rate  Tracker  85% loan-to-value or higher Green Right to Buy
Term length	3 – 40 years
Minimum loan size	£25,000
Allows overpayments	Yes
Mortgages are portable	Yes
Ways to apply	Online, phone, in branch, broker
Customer service contact options	Online, phone, in branch, mobile app
Fairer Finance customer experience rating	58% (as at 31 October 2023)

Where NatWest mortgages stand out

There is a 20% overpayment allowance

The annual overpayment limit of 20% of your remaining balance on NatWest fixed-rate and tracker rate mortgages before you’d face any early repayment charges is double the 10% that most lenders allow.

Multiple application and support options

NatWest allows borrowers to apply for its mortgages either online, over the phone or at one of its branches, and then offers access to customer support through the same channels, as well as through its mobile app. 

Long mortgage terms

The maximum mortgage term of 40 years that can be set for a NatWest mortgage is longer than some lenders allow, where 35 years may be the longest term available. However, choosing a longer repayment period will mean you end up paying more interest overall.

Paperless applications 

If you prefer to manage as much as you can online, NatWest allows you to get a decision in principle, upload documents, track your application and sign your mortgage agreement from the comfort of your home. 

Where NatWest mortgages fall short

Fewer product options than some

If you’re buying with the help of a homeownership scheme, NatWest has mortgages for those using Right to Buy, but not currently for properties being bought via Shared Ownership or the First Homes scheme. NatWest doesn’t offer family or springboard mortgages, discount mortgages, or offset mortgages, either.

Smaller mortgages are available elsewhere 

The minimum mortgage amount NatWest allows is £25,000. If you’re looking for a smaller mortgage there are some lenders that offer much lower amounts. 

» MORE: Best mortgage lenders

What types of mortgages does NatWest offer?

NatWest first-time buyer mortgages

NatWest first-time buyer mortgages are available up to 95% loan-to-value (LTV). This means you may be able to get a NatWest mortgage with a 5% deposit. Some NatWest first-time buyer mortgages offer cashback as an incentive, though it’s important to consider all aspects of a mortgage, and select the most suitable for your circumstances and needs.

NatWest remortgages

NatWest offers a range of remortgage options if you wish to switch from your current lender. Some NatWest remortgage deals are available without a product fee.

NatWest buy-to-let mortgages

NatWest has offered buy-to-let mortgages to landlords in the past but has no product options available to borrowers at the moment. 

NatWest mortgage features

Repayment options

NatWest mortgages are available on a capital repayment or an interest-only basis. 

With a repayment mortgage, your monthly repayments cover the interest you’re charged for that month and will also pay off an element of the original mortgage amount, or capital, you borrowed at the outset. As long as every repayment is made on time, it should work out that everything you owe is paid off by the end of your mortgage term. 

Interest-only mortgages tend to be harder to obtain and, with NatWest, you’ll need to talk to one of its mortgage advisers if you want to apply – you can’t apply online. With an interest-only mortgage, the monthly repayments only cover the interest for that month and contribute nothing towards paying off your original mortgage amount. Instead, you’ll need a repayment strategy in place that is designed to pay back the loan amount you took out when your mortgage term ends. This repayment plan may include an endowment plan, stocks and shares ISA, a pension, or another form of investment. Note that interest-only mortgages often have lower LTV limits than capital repayment mortgages as well. 

» MORE: Interest-only vs. repayment mortgages

Mortgage rates

NatWest offers fixed-rate and tracker rate mortgages. The interest rate you pay on a fixed-rate mortgage is fixed for a set period of time – typically for two or five years. This means your monthly repayments stay the same for the length of the fixed-rate deal you’ve agreed, providing peace of mind that your repayments won’t change during that period. 

At the end of your deal, you may want to remortgage to a new deal; if you don’t you’ll automatically move onto NatWest’s standard variable rate (SVR). NatWest has the right to increase and decrease this rate whenever it wants. It will also usually be higher than the rate you’ve just left behind.  

With a NatWest tracker mortgage the mortgage rate you pay rises and falls in line with the National Westminster Bank Plc base rate. Unlike many other tracker mortgages, NatWest can change this rate when it wishes, and movements are not guaranteed to reflect changes in the Bank of England base rate of interest. This type of mortgage can see your monthly repayments rise and fall and makes it essential to work out whether you could still afford your monthly repayments if rates were to increase.

» MORE: Fixed- vs. variable-rate mortgages

Loan-to-value ratios

NatWest offers mortgages up to 95% LTV, which means there are mortgage options available if you have a 5% deposit. 

» MORE: Why your LTV is important for a mortgage

Mortgage offers 

Any mortgage offer you receive from NatWest is valid for six months. During this time, the mortgage rate you’ve been offered will not change. It may be possible to get an extension of up to one month if you’re running out of time to complete. 

Making overpayments

If you have a NatWest fixed-rate or tracker mortgage, it’s currently possible to overpay by up to 20% of your outstanding mortgage balance every year before an early repayment charge must be paid. If you want to overpay your mortgage NatWest offers the option to make one-off lump sum overpayments, set up regular overpayments or do both. Always check the terms and conditions of your mortgage for charges before making additional payments. 

» MORE: Mortgage overpayment calculator

Paying off your mortgage early

It is possible to pay off your NatWest mortgage early, but you may need to pay fees and early repayment charges depending on where you are within your deal period. If you’re considering paying off your mortgage early, you can ask for a redemption statement from NatWest online. 

Porting your mortgage

If you’re moving home and would like to take your existing NatWest mortgage with you, the vast majority of its mortgages can be ported. It may be possible to port your mortgage without needing to pay early repayment charges, but you should always check with a lender first if any charges will apply. 

Customer support

NatWest offers a number of channels through which you can contact customer support. These include by phone, online, through the NatWest mobile app and at NatWest branches. You may also see a chat option on the NatWest website where a digital assistant – Cora – attempts to answer your questions. If it cannot, you’ll be redirected to speak to a real person.

Mortgage calculators

The NatWest website hosts a selection of mortgage calculators, including an overpayment calculator, borrowing calculator and interest rate change calculator. 

» MORE: Our mortgage calculators

Customer ratings

NatWest has been awarded a customer experience rating of 58% by Fairer Finance in relation to mortgages, which sees the bank rank 18 out of the 23 lenders it reviewed. The ratings are designed to reflect the trust that borrowers have in a brand, how happy they are with the lender, and the responses that lenders provide to complaints. How clearly lenders explain their mortgage products and the simplicity of the documents given to customers are also considered. 

This information from Fairer Finance was correct as of 31 October 2023.

How can I apply for a NatWest mortgage? 

You can apply for a NatWest mortgage yourself directly to the bank or you can apply through an independent financial adviser (IFA) or mortgage broker. 

If you are confident in selecting a suitable mortgage without advice, you can apply directly for a NatWest mortgage online. However, if you have any doubts, you may want to get mortgage advice. NatWest has its own mortgage advisers who you can call, though crucially they are only allowed to recommend you mortgages from NatWest. 

Alternatively, you may want to approach an independent financial advisor (IFA), who can advise on mortgages from a range of different lenders. It’s important to find out whether they can recommend mortgages from the whole of the market or have a panel of lenders from which they choose. 

Note that any NatWest mortgages they can access may differ from those you can get from NatWest direct. Some mortgages offered through IFAs may have favourable terms. You may be charged for using the services of an IFA, or any other mortgage broker or intermediary. 

» MORE: Do I need a mortgage adviser? 

How to apply for a NatWest mortgage

To apply for a mortgage from NatWest you should:  

1. Get your information prepared: NatWest will ask you to provide certain details and documents, so you need to be ready. These usually include information relating to your income, expenditure, employment and personal details such as where you live. 
2. Get an agreement in principle (AIP): An AIP gives you an idea of how much NatWest  may be willing to lend to you.It is not a guarantee you will get a mortgage but it will not affect your credit score to get one.  
3. Start your application: Once you have an AIP, you can apply for a NatWest mortgage. If you want advice, you should get it now. 

Seeking advice from a mortgage adviser can help you find a mortgage that is suitable to you. Advisers will also usually offer support throughout the application process.    

How easy is it to apply for a NatWest mortgage? 

NatWest offers paperless mortgage applications which allow you to apply online, upload the documents you need to provide, and sign your mortgage agreement online. You can go online to track the progress of your application too.