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What To Do If Natwest Rejects Your Mortgage?

What To Do If Natwest Rejects Your Mortgage?
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Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin26 Jun 2024

Getting a mortgage rejection from NatWest can feel like a major setback. If you've faced this issue, you're not alone. This article guides you through understanding why your NatWest mortgage might have been declined and what steps you can take to improve your chances next time.

Ready? Let's get started on turning that rejection into approval!

Reasons for NatWest Mortgage Application Decline

Getting turned down for a NatWest mortgage can happen for various reasons beyond just your credit score. Issues like unstable employment, property concerns, or even the use of payday loans might lead to rejection.

Serious credit issues

Serious credit issues can derail your chances of getting a mortgage with NatWest. County Court Judgements (CCJs) or being part of a debt management plan signal to lenders that you've had significant struggles managing credit in the past.

These markers on your financial history suggest to NatWest that lending money to you poses a higher risk.

Improving your NatWest credit score becomes crucial if you face such obstacles. Start by addressing these serious credit issues head-on. Paying off outstanding debts and ensuring no further CCJs are levied against you could help repair your financial reputation over time.

This approach doesn't offer an instant fix but gradually increases the likelihood of mortgage approval in future applications.

Employment stability

Moving from serious credit issues, NatWest mortgage rejection can also stem from concerns about employment stability. Banks like NatWest consider steady employment a key indicator of financial reliability.

Applicants who have recently started a new job or those whose income has changed significantly may face hurdles during the application process. This scrutiny ensures that borrowers have a stable source of income to meet their loan obligations over time.

Stable employment history demonstrates to lenders like NatWest the borrower's ability to consistently earn and save money, making them less risky candidates for mortgage approval. For those with gaps in their employment or frequent job changes, providing additional documentation such as future income contracts or letters from employers can help mitigate concerns and bolster an application.

Use of payday loans

Following concerns about employment stability, it's essential to understand how the use of payday loans impacts mortgage applications with NatWest. Payday loans are often viewed by lenders as a red flag for poor financial management.

This perception stems from the assumption that individuals resort to such high-interest, short-term credit options due to lack of savings or inability to manage their finances efficiently.

NatWest, like many banks, scrutinizes loan applicants' financial behavior closely. Utilizing payday loans can significantly hinder one's chances of being approved for a mortgage because it suggests to the lender that the applicant may struggle with maintaining regular payments and managing financial commitments effectively.

This concern over potential borrowers' reliability and financial stability makes payday loan usage a critical factor in NatWest’s evaluation process for mortgage applications.

Property issues

NatWest often rejects mortgage applications due to property issues. Properties that are unique or require significant repairs pose a higher risk for lenders. These types of properties can be challenging to sell if the bank needs to reclaim and sell the asset in the event of a foreclosure.

NatWest evaluates properties on their condition and marketability before approving a mortgage application.

Securing a mortgage for unusual properties or fixer-uppers requires thorough planning. Applicants should prepare detailed information about the property's potential value after renovations and consider consulting with a specialist who understands how to finance unique real estate projects.

This step can demonstrate to NatWest or any lender that the investment is sound, despite initial appearances.

Additional Factors Leading to Application Decline

Discovering the various reasons NatWest might decline a mortgage application can also lead you to find out about additional aspects, such as age limits and plans for subletting. These insights might surprise you but knowing them equips you with more knowledge on what to watch out for in your next application attempt.

Keep reading to learn how these factors play a crucial role and what steps you can take to address them before reapplying.

Age restrictions

NatWest sets age restrictions on mortgage applicants, often rejecting those over 72 years old. The bank examines an applicant's age at the time of application to ensure that the mortgage term does not extend beyond reasonable retirement years.

This policy aims to reduce the risk of non-repayment as income typically decreases during retirement.

Age plays a significant role in loan approval processes, affecting how lenders evaluate an applicant's ability to repay a mortgage over its term. Prospective borrowers should consider their age and plan accordingly before applying for a mortgage with NatWest or any other lender.

Consider your current age and projected retirement age carefully when applying for a mortgage.

Moving forward, understanding your history with unsecured loans becomes crucial.

History of unsecured loan arrears

A history of unsecured loan arrears can significantly impact your ability to get approved for a mortgage. Unsecured loan arrears show lenders that you have previously struggled to meet financial commitments, lowering your creditworthiness in their eyes.

This factor alone might deter them from approving your application, as it raises concerns about the risk of lending to you.

Lenders scrutinize your credit report for evidence of consistent and reliable financial behavior. Having arrears on loans or credit cards suggests that you may not handle debt responsibly.

This red flag makes lenders hesitant because it hints at potential future defaults on mortgage payments. Without a solid track record of managing debt efficiently, securing a mortgage becomes an uphill battle.

Subletting plans and guarantor applications

Subletting plans can greatly affect the success of your mortgage application. Lenders closely examine these because subletting might change the property's risk profile. If you plan to rent out part or all of the property, this must be clearly communicated, as certain mortgages do not allow it at all.

Guarantor applications are scrutinized similarly. They involve another person vouching for your loan repayment, which introduces additional variables into the lender’s decision-making process.

Mortgage providers like NatWest evaluate guarantor financial stability along with their relationship to you. Both factors introduce more complexity into your application and could influence its outcome in ways that direct applications do not.

Next, we will explore what steps to take after experiencing a mortgage rejection.

Steps to Take After a Mortgage Rejection

Facing a mortgage rejection can lead to frustration, but it's crucial to take proactive steps forward. Start by pinpointing why NatWest declined the application, then work diligently to address those issues before approaching other lenders or reapplying.

Understand the reason for the decline

Identifying the reason NatWest declined your mortgage application is a crucial first step. The bank might have concerns about your credit history, income stability, or issues with the property you're interested in.

Each of these factors plays a significant role in their decision-making process.

Understanding why the application was declined is essential before making any further moves.

Improving your financial situation becomes easier once you know what problem areas to focus on. If it's credit history, taking steps to repair it can make a difference. For income-related issues, demonstrating job stability or increasing your earnings could help.

Addressing property concerns might involve choosing a different property or resolving any disputes if your property may be repossessed in the future or other complications tied to the one you had in mind.

Improve the financial situation

After pinpointing why your mortgage application was declined, the next crucial step involves bettering your financial status. Making a concerted effort to save for a larger deposit can significantly enhance your appeal to lenders, including NatWest.

A more substantial down payment decreases the amount you need to borrow and lowers the risk for the lender, potentially leading to more favorable loan terms.

Working on improving your credit score is another effective strategy. Pay off existing debts and ensure that all bills are paid on time. This demonstrates financial responsibility and reliability to prospective lenders.

By dedicating time to these areas—increasing savings for a deposit and enhancing creditworthiness—you position yourself as a stronger candidate for future mortgage applications.

Consider different lenders

Improving your financial situation significantly boosts your chances of getting a mortgage, but if NatWest declines your application, another effective step is to explore options with different lenders.

Some financial institutions have criteria that are more flexible than NatWest's. By considering banks and lending companies that specialize in cases similar to yours or are known for their customized approaches, you might find one willing to work with you despite any issues that led to the initial rejection.

Different lenders evaluate mortgage applications based on various factors and risk assessments. This means what disqualifies you at NatWest might not be a concern for another lender.

Research lenders who offer more accommodating policies toward borrowers with unique circumstances such as self-employment, past credit issues, or unconventional properties. This strategy can open up new possibilities for securing a mortgage that fits your needs.

Seek professional advice

After considering other lenders, seeking professional advice becomes crucial. A specialist broker specializes in offering solutions that are directly suited to your needs. They can navigate the complex market on your behalf, finding deals that you might not have access to otherwise.

Their expertise allows them to assess which lenders are more likely to approve your application, based on a thorough understanding of each lender's criteria and preferences.

These professionals also provide valuable insights into making your financial profile more attractive for future applications. By evaluating your situation, they can suggest specific improvements or alternative strategies, potentially saving you time and increasing your chances of approval next time you apply.

Opting for professional advice could be the game-changer in securing a mortgage that fits both your current situation and future goals.

Waiting Period Before Reapplying for a Mortgage with NatWest

After a mortgage rejection, you should wait at least six months before trying again with NatWest. This gives you time to improve your financial situation and potentially increase your chances of approval next time.

Keep reading for more tips on how to make the most out of this waiting period and strengthen your application.

Wait at least six months

Taking a pause of at least six months before submitting another mortgage application to NatWest gives you the opportunity to address and improve upon the factors that led to your previous rejection.

This break allows you not just time to enhance your financial health but also to potentially boost your universal credit score, which is a critical component in the approval process.

It's advisable to wait at least six months before reapplying. Improve aspects that led to the refusal during this period.

Use this interval wisely by analyzing what went wrong with your initial application and making concrete changes. Whether it involves settling outstanding debts, building a stable employment history, or saving for a larger deposit, each step taken enhances your profile as an applicant.

This strategic approach can significantly increase your odds of approval when you decide it's time to try again with Natwest.

Improving Chances of Approval by NatWest in the Future

To boost your approval odds for a NatWest mortgage, focus on strengthening your financial health. Apply corrections to any mistakes in your credit report and gather a larger down payment while seeking guidance from a mortgage expert.

Strengthen financial profile

Improving your financial profile plays a crucial role in getting a mortgage application approved. Focus on enhancing your credit score by paying all bills on time and working to reduce any outstanding debts you have.

Avoid taking out new loans or lines of credit, as these can signal financial instability to lenders.

Make consistent efforts to save money where possible, increasing the amount you have for a deposit. A larger down payment demonstrates financial discipline and reduces the loan-to-value ratio, making your application more attractive to lenders like NatWest.

Check and correct credit report errors

Checking your credit report for errors is a critical step to take before applying for a mortgage. Small mistakes, such as incorrect personal details or wrongful financial information, can significantly lower your chances of approval.

Get these errors corrected swiftly by contacting the credit bureau and providing them with the necessary documentation to prove the inaccuracies. This action alone could improve your credit score, making you more appealing to lenders like NatWest.

After ensuring all information on your credit report is accurate, focus on building a stronger financial foundation.

Save for a larger deposit

Saving for a larger deposit boosts your chances of mortgage approval. A substantial down payment shows lenders you're financially responsible and lowers their risk. This approach improves your likelihood of getting the green light from NatWest and can also secure you more favorable mortgage rates.

A bigger deposit translates to borrowing less, which means lower monthly repayments on your mortgage. Lenders see this as a sign of reduced financial strain on borrowers, making them more inclined to approve your application.

Aim to save as much as possible to increase both approval odds and access better loan terms. Also, you can contact a natwest branch locator that can provide you with relevant information and prove your identity and address before another mortgage application.

Seek expert mortgage advice

Seeking expert mortgage advice can significantly increase your chances of approval, especially if you're a first-time buyer, have a history of bad credit, or are dealing with a complex financial situation.

Experts understand the intricacies of the mortgage process and can provide a mortgage offer customized strategies to strengthen your application. They may suggest ways to improve your credit score or find lenders more likely to approve your application based on your unique circumstances.

Professionals in this field also help those with low deposits by identifying programs or lenders that are more flexible with their loan-to-value ratios. By leveraging their knowledge and networks, they can guide you through alternative paths that align with your financial goals, making the process less stressful and more successful. However, keep in mind that high street lenders and brokers may require you to pay a valuation fee as they conduct a property valuation to determine the minimum amount of mortgage you can obtain.


Facing a mortgage rejection from NatWest doesn't spell the end of your home-buying dreams. Take it as an opportunity to review and strengthen your financial health. By correcting any credit errors, saving for a larger down payment, and possibly consulting with mortgage experts, you improve not just your chances with NatWest but with other lenders too.

Persistence coupled with informed adjustments moves you closer to securing that desired mortgage approval in the future.


1. What should I do first if Natwest rejects my mortgage application?

First, ask Natwest for the reasons why your mortgage application was rejected.

2. Can I apply for a mortgage with another bank after being rejected by Natwest?

Yes, you can apply for a mortgage with another bank or lender after a rejection.

3. Should I check my credit report if my mortgage application is rejected?

Yes, checking your credit report is important to see if there are any errors or areas to improve.

4. Is it possible to improve my chances of getting approved for a mortgage in the future?

Yes, improving your credit score and saving for a larger down payment can help increase your chances of approval.

5. Can speaking with a financial advisor help after a mortgage rejection from Natwest?

Speaking with a financial advisor can provide guidance on how to better prepare for future applications and explore other financing options.

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.