Could NatWest equity release be an option for you? Or could you consider some of its mortgaging products as alternatives to access cash?

Since the bank is 1 of the UK’s leading financial service providers, it makes sense to explore its product range.

STATEMENT: BankingTimes is a separate third-party information provider and therefore not related to Natwest, and the information replicated in this section represents the interpretations of BankingTimes only and not the opinions of Natwest. This piece does not constitute advice, or an incitement to enter any services or products provided by Natwest.

What Is the Customer Feedback on Natwest Equity Release?

Overall, customer feedback on Natwest equity release is largely positive. Many clients highlight the straightforward application process, competitive rates and exceptional customer service. The flexibility of the equity release scheme, offering lump sum or drawdown options, is praised by many.

However, some feedback reflects occasional issues with delays in processing. Also, a few customers have noted that Natwest does not offer lifetime mortgages, a type of equity release product. Despite these, the majority of clients report satisfaction with the Natwest equity release scheme.

With so much information available these days, it could be overwhelming to distinguish between facts and fiction.

That is why our expert researchers have made it easier for you by gathering all the necessary information so you can decide for yourself if NatWest has what you need.

Does Natwest's Offer Traditional Equity Release Products?

No, it does not offer traditional equity release products like home reversion plans or lifetime mortgages.

What Are Natwest's Alternatives to Equity Release?

Even though it does not offer traditional equity release, NatWest does provide alternatives in the form of:

• Remortgaging 
• Additional loans on your mortgage to pay for a specific expense. 

The Power of Remortgaging with Natwest

If you decide to remortgage with the bank, you might be able to save some money as it has signed up to the UK Government’s Mortgage Charter¹ to help ease the burden on homeowners struggling to keep up with their mortgage payments.

Residential mortgage holders whose payments are up to date have 2 options to help reduce their short-term payments. 

These options are: 

• Change your current mortgage to interest only for the next 6 months.
• Extend the term of your current mortgage, with the option to change it back to your original term after 6 months.

How Does Remortgaging with NatWest Work?

If you remortgage with the bank, you can release locked-in equity from your home.

That means that you will be able to remain in your house but get a new mortgage that would consider the equity you already have. 

To start this process, you will need to follow these 2 steps:

• Get an agreement in principle: By providing personal details about your mortgage, income and expenses, you can receive an indication of what remortgage terms you could qualify for by using its remortgage calculator.²
• Start with your application: by applying online³ or calling the bank directly on 0800 096 9527.

What Happens if You Are an Existing NatWest Mortgage Holder?

If you already have your mortgage with the bank, you can simply go online, log into your account and go to ‘Manage Your Mortgage’ to see what deals are available.

You do not have to start an application from scratch if your circumstances are unchanged; just type in your mortgage account number and personal details to apply online for the mortgage product of your choice. 

Who Is Eligible?

NatWest does not offer remortgages to 3 or more people or for guarantor mortgages since all its remortgaging options are based either on interest or capital. 

The following eligibility criteria apply:

• Limited to UK-based properties.
• You must be a UK or EU citizen or a UK resident older than 18.
• Your income must be in GBP currency.
• You have not been declared bankrupt in the last 6 years.
• Your property has not been seized.
• Your mortgage payments must be up to date.
• You have never arranged a repayment plan with any creditor in the past.
• There has not been a County Court judgement against you in the last 6 years.

Pros and Cons of NatWest Remortgages

Although remortgaging could bring immediate financial relief, some drawbacks should be considered.

Pros to explore:

• Reputable lender: Your Mortgage has awarded NatWest as the ‘Best Bank 2022’.
• Paperless online application: You can submit and sign all your documents online and track your application. 
• NatWest will pay your valuation and legal fees: on standard remortgages.

Cons to explore:

• Not all products are exempt from valuation and legal fees: First, check with the bank if it will pay these costs on your behalf for your remortgaging product.
• No equity release products are on offer.
• Monthly repayments are compulsory on remortgages: unlike with equity release products where regular payments are optional. 

Additional Borrowing: Another Viable Option

Additional borrowing also makes it possible for you to borrow more money with a loan secured against your property. 

What Is Additional Borrowing?

Additional borrowing is still a mortgage but gives you access to a larger loan for a specific purpose.

Features include:

• Still only one, monthly repayment: your payment will now increase because the additional loan will be added to your existing instalment. 
• Longer terms and higher borrowing threshold: additional borrowing on your mortgage could give you access to a larger loan and longer terms to pay it off, compared to a personal loan.

How It Works

When applying for additional borrowing on your NatWest mortgage, you must remember that the rates you could qualify for are based on your Loan To Value (LTV).

To start the process:

• Get an estimated property value: log into your online mortgage account and go to ‘Manage my Mortgage’.
• Provide the reason: why you need additional borrowing, which could include home renovations, debt consolidation and buying a second home.
• Check your credit score: Customers can access a free, soft credit check or can access the bank’s mobile app through its mortgage portal.

What are the Criteria?

You have to comply with certain eligibility criteria to qualify for additional borrowing.

These criteria include:

• Limited to UK residents
• Subject to LTV and must meet the latest lending requirements.
• Mortgages must be paid in full before you turn:
• 75 for a capital and interest mortgage, 
• 70 for a residential interest only mortgage, and
• 80 for a buy to let mortgage.
• The minimum load amount is £10,000; you should consider a personal loan for anything less.
• Terms start at 3 years, with a maximum term of 40 and 35 years for interest only and buy to let mortgages.

Pros and Cons of Additional Borrowing

The pros of additional borrowing include enabling you to make a large purchase like buying a car, but on the downside, it also increases your debt.

Pros to consider:

• Access to instant cash
• It is a reputable UK financial service provider regulated by the Financial Services Authority (FCA).

Cons to consider:

• It keeps you in debt for longer
• If you are unable to keep up with your monthly repayments, your property could be repossessed.

Understanding Natwest's Interest Rates and Fees 

Interest Rates

Its standard mortgage interest rates vary and depend on your specific circumstances.⁴

Generally, interest rates vary from 5.97% to 6.28%* and are slightly higher than standard mortgage rates.

*We regularly review our rates, but these may have shifted since our last update.

Fees

Fees for standard mortgage products generally include arrangement and valuation fees.

However, standard mortgage fees could include:

• Valuation fees if applicable
• Additional survey fees if necessary
• Solicitor’s costs
• Home insurance
• Stamp duty
• Closing fees

Comparing Natwest's Solutions to Traditional Equity Release

Although the bank does not offer traditional equity release products, you could still switch the equity locked in your property into cash by remortgaging or additional borrowing. 

Key Differences in Terms and Conditions

The main difference in the terms and conditions is that:

• With equity release, you are not obliged to make regular repayments.
• With the alternatives, you are required to keep up with monthly instalments.

Also:

• With an equity release lifetime mortgage, you could make additional payments to reduce interest. Still, you are not obligated to as the loan would be settled at your passing or going into long-term care.
• With remortgaging, you could save money on your monthly instalments if you qualify for a better deal.
• But with additional borrowing, your monthly repayment will increase as the new loan would be added to your existing mortgage payment. 
• Interest rates are generally higher on equity release products than alternative mortgage products.

Is NatWest Worth Considering?

Yes, as 1 of the largest banks in the UK, it has been looking after people’s financial services needs for many years as it gradually merged into the NatWest Group of today.⁵ 

Other reasons to consider the bank include:

• Proven, regulated and award-winning provider of financial services.
• A wide range of financial products.
• Convenient online access to financial services and products.
• Some of its mortgage products are exempt from product fees.

What Do Customers Think About Natwest?

Its online reviews were a mixed bag, with many customers favouring its convenient app, while others complained about its customer service. 

Take a look at these reviews:

• Trustpilot 
• Review.io
• SmartMoneyPeople.com 

NatWest Customer Complaints 

It has various channels for customers to report complaints.

Customer complaints can be lodged in 5 different ways:

• Via the NatWest website. 
• In-person with a consultant at a NatWest branch.
• In writing, addressed to NatWest Mortgage Centre, PO Box 123, Greenock, PA15 1EF.
• By phoning the NatWest 24-hour phone line on 0800 917 0526.
• Or using the live WebChat option for a real-time resolution.

How Do I Get in Touch

Email: enquiries@natwest.com

Telephone number: +4403457888444

Address: 250 Bishopsgate, London, England, EC2M 4AA.

Is Natwest Regulated?

Yes, it is regulated by the following regulatory bodies: 

• Financial Conduct Authority (FCA)
• Prudential Regulation Authority (PRO)

Financial Conduct Authority (FCA)

The bank is one of nearly 50,000 businesses in the UK regulated by the Financial Conduct Authority (FCA)⁶ to ensure good conduct by the financial services sector. 

According to the FCA's records, the firm is registered as National Westminster Bank Plc. 

It is permitted to provide financial services for mortgages and home finance, consumer credit, banking, insurance, pensions, payment services, E-money, and investments. 

Prudential Regulation Authority (PRA)

It is also a member of the Prudential Regulation Authority (PRA),⁷ which forms part of the Bank of England and is responsible for supervising financial service providers to ensure products are offered safely and soundly.

How Did We Review Natwest?

Our review is based on the following:

• Reputation and History: How long has the bank been in business, customer reviews, and industry rewards received?
• Financial Strength: Ensuring it is going strong and has adequate funds to meet long-term commitments.
• Product Range: We will favour companies offering a variety of equity release schemes with greater product flexibility.
• Interest Rates and Fees: We have reviewed competitive rates with industry averages, and they must be fully transparent about rates and fees without hidden costs.
• Customer Service and Support: When and how it is available, response times, online educational resources, and online tools, like a calculator.
• Code of Conduct and Compliance: We only considered companies that adhere to recognised industry standards and codes.
• Industry Insights and Peer Reviews: We care about a company’s industry-wide reputation.
• Innovation and Technology: Is there a streamlined, digital application process?
• Client Testimonials: Success stories and the complaints resolution process.

Common Questions

Conclusion

Although NatWest does not offer any lifetime mortgages or home reversion plans, you could still access equity from your property with its remortgaging and additional borrowing options.

However, it remains a big decision, so it is important to discuss all your options with a qualified financial advisor.

If you are considering NatWest equity release, make sure you know exactly how it will impact your financial circumstances so you can make the best choice for you.