NatWest has launched an offer extension to our Intermediary New Build proposition. For customers arranging their mortgage through an Intermediary we will allow brokers to request an extension to an existing mortgage offer, at any point within the initial 6 month offer period. This means that customers could have a total offer period of up to 12 months. This will be subject to the confirmation of a successful credit search and property valuation.

NatWest’s current offer period on property purchases is valid for 6 months, with room for a one month extension. However, new build properties can take longer than 6 months from the customer agreeing to purchase the property to getting the keys. So to acknowledge the complexities of the new build process we are introducing the offer extension to our new build proposition.

Brokers can request an extension by populating an offer extension template (attached in this e-mail and also available in our Forms and Guides section) where they will need to provide a declaration confirming any detrimental financial change to the customer’s circumstances since the initial assessment.

The offer extension will be valid for 6 months from the point the extension is agreed.

If you have any questions please do not hesitate to call me or use our dedicated instant messaging service LiveTALK.

FAQs

How do I request an extension?

A new memo template has been introduced to support this proposition. Brokers need to complete the fields on the memo and email the completed version to intermediarydocs@natwest.com. Where additional documents are required these should be submitted in the usual way.

How long will offers be extended by?

Where an extension is granted the new offer will be valid for 6 months from the point of agreement.

When can the extension be requested?

An extension request can be made at any time but Brokers should avoid requesting the extension within the final 3 weeks of the original offer to ensure the original offer does not expire before the outcome of the extension request is known. The new offer will be valid for 6 months from the extension being granted, not 6 months from the end of the original offer.

How long will it take to process the request to extend the offer?

It is expected to take a minimum of 4 days to review the request and grant the extension. Where the customer’s financial position has changed or the property needs a new full valuation to be complete it will take longer. It is expected that a decision will be made on all requests within 3 weeks of the broker request.

How many extensions can a customer get?

One extension will be granted per new build property.

Can a broker still request a 1 month extension?

No, the 6 month extension replaces the 1 month extension process.

What happens if a one month extension has already been agreed?

If the broker already has a one month extension in place they cannot apply again for a further extension.

Can a broker request an extension on a Buy to Let new build offer?

Yes, the request process can be used for Residential and Buy to Let applications.

Does the customer have to pay to extend their offer, or are there any extra costs involved?

There is no cost to extend the offer. Where a new full valuation needs to be carried out the cost will be covered by NatWest.

What documents will brokers need to provide for the offer extension?

The offer extension template will be required in all cases. If the customer’s situation is unchanged then original documentation supplied will suffice. However if there are any detrimental changes to the customer’s financial position then brokers will need to supply new income and financial commitments verification.

How will the customer’s financial position be reviewed?

Underwriters will refresh the credit score for all customers requesting to extend their offer. This will include a new bureau check but will not leave an additional footprint on the customer’s credit file.

Where the broker declares a change in the customer’s financial position as part of their request a full affordability assessment will be undertaken by an underwriter using the new documents the broker provides.

Can the request to extend the offer be declined? IMPORTANT MESSAGE

Yes, the request may be declined due to a change in the customer’s financial position and/or a change in the property’s value since the original offer was issued. Where the valuation has decreased the original offer may be withdrawn and a reduced mortgage offer may be made.

Any customers who do not pass the refreshed credit score will be referred to an underwriter for assessment. The extension request may be declined depending on what has changed in the customer’s circumstances. Where their debts have increased and the mortgage is no longer affordable as a result of decreased income or increased financial commitments, the offer will not be extended and the original offer may be withdrawn.

Where customers have exchanged contracts on their new property serious consideration should be given to the above information before applying for an offer extension.

Does the broker need to choose a new product?

It is not necessary to select a new product when requesting an extension to the offer, unless a new valuation is required and the new value affects the customer’s LTV.

How will we re-check the property value?

A post valuation query will be used to contact the same surveyor who originally valued the property to ask them to validate if there has been a significant change (greater than 10% increase or decrease) in market conditions in the local area that will affect the property value. Their response will not include a value.

Where they believe the property value has changed a full valuation will be instructed (Natwest will cover this cost) and the result of this will be shared with the broker to discuss options with their customer.

What happens if the property value has reduced?

Where a full valuation indicates a lower value the broker will be informed so they can discuss the options with their customer.

What happens if the property value has increased?

Where a full valuation indicates a higher value the broker will be informed so they can discuss the options with their customer, including a lower loan-to-value product, if applicable.