NatWest updates criteria for those returning from furlough

NatWest has updated its employed policy for applicants following current restrictions and the extension of the Job Retention Scheme until March 2021.

For applicants who have returned to work following furlough, they will need to demonstrate at least one full month’s evidence of their income otherwise NatWest say they will not accept their application at this time.

A return to work letter from a customer’s employer is no longer acceptable evidence according to the lender.

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The changes in policy are effective from Tuesday 1 December for all new employed applications, and do not impact employed applications submitted prior to this date.

NatWest have said that they will continue to review their policy in light of any “appropriate changes” which affect employed customers.

Despite these changes, NatWest maintain that their “primary purpose remains to ensure that any mortgage we provide to customers is affordable”.

For all customers not impacted by furlough, there are no changed to their current policies, with NatWest’s self-employed policy remaining the same.

For those on partial furlough – or working on a fixed working pattern – the customer’s earned income will be acceptable and can be used, whilst their furlough income cannot.

Flexi-Furlough – if a customer is back at work but not yet on a set working pattern or fixed number of hours – customers will not be accepted, as NatWest say this “is not an acceptable income which can be used” and is “not evidence of a sustainable level of income”.

As part of this policy change, for customers who have returned to work post-furlough between one and three months, their basic income will be accessed by using basic income evidenced from all available post-furlough payslips and will not include any COVID-19 related government support.