NatWest Bridging Loans
Who are NatWest and what do they do?
Founded in 1968, NatWest — also known as National Westminster Bank, with 19 million customers, it’s the largest business and commercial bank in the UK.
They claim to be the biggest support of the UK business industry with everyone from start-ups to multinational companies choosing to bank with them.
Does NatWest offer bridge loans?
Yes, NatWest does offer customers bridging loans. You can either apply directly through NatWest for a bridging loan or use a broker or comparison service to help you locate the best bridging loan lender for your needs.
What can you use your NatWest bridge loan for? Most use it for buying a property while they wait for their current one to sell — bridging the financial gap between this process — hence where the term comes from.
You can also use your loan to buy a property at auction or to develop your property. This loan can be used by both individuals and businesses (mainly property developers). If used for business purposes, the loan is unregulated.
Please note that it is difficult to secure a bridging loan through a high street bank like NatWest — they don’t outwardly advertise these products to customers.
Many borrowers seek out bridging finance from an alternative lender because it’s a quicker and more flexible way to secure this finance, plus there’s more choice.
What do NatWest’s interest rates look like on bridging finance?
The average range for bridging finance interest rates is usually between 0.4% and 2%. But as bridging loan lenders can’t make their money back through monthly repayments, the interest is charged on a monthly basis.
This means that even with a small fluctuation in interest rate, the borrower will end up forking out a lot more per month.
If you need the loan for a longer period of time, say 12 months, you’ll need to factor in your interest rate when you’re working out affordability. NatWest will want to see your exit strategy before agreeing to lend you a bridge loan.
These figures are just a guide, to get an understanding of current interest rates, you’re best comparing bridging lenders. Compare lenders now.
What do I need to get a bridging loan with NatWest?
If you apply for a traditional loan, particularly if it’s unsecured, the lender will be more concerned with your creditworthiness. But for a bridging loan, lenders aren’t too focused on your credit score. That’s because you’re securing the loan against the property you’re selling.
Something NatWest will need to see before lending to you is a clear exit strategy — they’ll want to know how you plan on repaying the loan. You’ll also need:
— proof that you have a registered UK address
— proof of income
— to be over the age of 18
NatWest will carry out a valuation report using its panel of surveyors.
How do I apply and how easy is the process?
Applying for bridging finance is relatively straightforward. You can apply directly with NatWest, arrange it through a mortgage broker, or apply using an alternative provider.
Before you apply, it’s a good idea to work out how much you’ll need to cover the purchase of your new property.
If you’ve got questions about the process or about securing a bridging loan in general, we’re here to help guide you.
Visit our FAQ section, or drop us a message.
How long does the application process take and when do I get the money?
Like with any loan application, how quick it’s processed depends on your individual circumstances. If you’re simply buying a new property while you wait for a straightforward sale to complete and you have a clear exit strategy, you should receive your conditional offer in a matter of days (sometimes hours).
If your circumstances aren’t as clear-cut, the process could take a few weeks.
Does NatWest offer any specialist bridging options for things like property, business, etc?
Most borrowers use their NatWest bridging loan to bridge the financial gap that naturally appears between buying and selling property.
So while you’re waiting for your old property to complete, you can move quickly and buy your next property.
Property developers also use bridging finance to purchase property at auction, but you don’t have to be a business to access a bridge loan.
It’s important to note that if you’re borrowing in your business’s name or the borrower (or immediate family) won’t be occupying the property, the loan is unregulated.
If you’re looking for a loan to help with commercial or residential property development, NatWest has specific loan products to help you complete these projects.
The advantages of a bridging loan with NatWest
Having been a staple of the Great British high street for over 50 years, some people prefer to apply for bridging finance through NatWest because they feel it’s a safer and more trustworthy lender.
If you already bank with NatWest, or you’re planning to line up a mortgage with them, the process of applying for a bridging loan could be easier for you.
The disadvantages of a bridging loan with NatWest
The bridging loan marketplace is competitive, so if you only choose to get quotes from NatWest, you could be missing out on better deals — that’s why comparing lender offers is crucial to securing the best deal.
Alternative lenders like these are specialist providers of bridging loans which means they can be more flexible and quicker to arrange your finance when compared to traditional high street lenders.
What is the Bridging Loan Directory?
We’re here to help you find the answer to all your bridging loan questions. We have a section packed with useful information from learning about interest rates to uncovering more details about peer-to-peer lending and development exit finance.
Our directory exists only to help you make an informed decision before applying for finance.
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