On this page...
Overlay
What affects mortgage eligibility?
Mortgage eligibility is complex and can be affected by a number of factors that include the size of your deposit, your credit score, income and monthly spending. Each lender will have their own criteria but using mortgage calculator tools can help give an indication of how much you could borrow.
How much you want to borrow
The size of the loan you’re applying for will affect whether you’re eligible for a mortgage. We will look at the amount you want to borrow against your income to determine the likelihood of you being able to pay it back.
Information Message
Your deposit and loan to value ratio
Your mortgage deposit will determine your loan-to-value ratio, and can also impact your eligibility for a mortgage. Some mortgages are available with just a 5% deposit, but you might need to save at least 10% of the value of your property.
Information Message
Salary and expected earnings
To be able to determine whether or not you can afford your mortgage, lenders will evaluate your income. Most lenders will be looking to loan you a maximum of four to five times your salary, although this can depend on other circumstances.
Information Message
Current employment status
Job stability is important when considering mortgage candidates. If you are in permanent employment this could improve your mortgage eligibility. You can still apply for a mortgage if you are self employed or freelancing though.
Information Message
Recent spending habits
We might ask for recent bank statements to look for irregular spending habits. It is important we understand your outgoings to ensure you can afford a mortgage. Gambling or large loan payments could impact your eligibility.
Information Message
Credit score and debt history
We will also usually check your credit score for anything concerning like poor debt history. This provides a clear indication on how much you could afford to regularly repay. A good credit score can help with mortgage eligibility.
Information Message
Are any property types not eligible for a mortgage?
When we decide to lend against a property, we must carry out a valuation that takes into account if the property is structurally stable and in sound condition. We lend against many construction types but there are some property types that are unacceptable for a mortgage product with NatWest. Some property types that are not acceptable include:
- Any property under commonhold tenure
- Properties registered as Houses in Multiple Occupancy (HMO)
- All self build properties
- Freehold Flats on Right to Buy Mortgage Scheme
Most other properties are acceptable for mortgage products with NatWest but there is a further list of criteria to be met on certain construction types. If you property type is not listed above but you still have concerns, we recommend you speak to a mortgage advisor by phone or in branch.
What if my application is rejected?
If your mortgage application has been rejected it could be due to a number of factors, including everything we have discussed on this page. The best action you can take on rejection is to get in touch with us to understand why your application has been rejected.