National Westminster Bank, normally referred to as NatWest, is a member of the Royal Bank of Scotland Group. Credited with introducing innovations like telephone banking to the industry in the 1980s, NatWest currently employs around 33,000 people and operates hundreds of branches across the United Kingdom.
Bridging loans are normally used for property transactions. These loans are designed to aid people who are moving house and who wish to purchase a brand-new home before they’ve sold their existing home. When a property owner’s equity is locked up in a mortgage, bridging finance can be used to fund the purchase of a new property without having to wait.
A bridging loan can be especially useful for property managers, developers and people buying auction property. Home-movers may be planning to use a bridging loan to cover a break in a property chain so that they can purchase a brand-new property whilst waiting for a new mortgage to be arranged.
However, it is always important to remember that taking out a bridging loan does not ensure you will get a mortgage in the future.
How Does a NatWest Bridging Loan Compare to a Secured Bank Loan?
Bridging loans differ from traditional loan products as they are only for short-term funding issues, whereas long-term loans tend to have more general purposes. Bridging finance is also a lot quicker to arrange, with the funds being transferred to a borrower’s account in a matter of days, compared to a number of weeks where more traditional methods of funding are concerned.
When you compare the cost of a NatWest bridging loan against the more conventional types of property finance, the following factors should be taken into consideration.
Apply for a Bridging Loan Online
The first step in making an application for a bridging loan is to provide the lender with some basic information. Simply enter the type of bridge loan you want, the property you intend to use as security and your personal details into our online loan application form and when we have received your request for bridging finance we will then contact you for any additional details we require in order to process your application.
Bridging Loan Calculator
Our calculator is fast and simple to use and shows the relevant interest charges and various other costs associated with your bridging loan. There are numerous bridging finance companies who charge many different rates of interest along with a host of other charges. These charges can differ substantially, thus making it hard to supply a bridging finance quoting system online that’s capable of giving quotes for all circumstances. A bridging calculator is meant as a guide only and should be used accordingly. You can also use our online bridge loan calculator to compare NatWest bridging products with financing packages from other providers.
In addition to the interest, you will need to pay a collection of different charges when you apply for a bridging loan, including some or all of the following:
A commercial loan is typically used to cover operational costs that a company may otherwise be unable to afford or fund.
When Are Commercial Loans Useful?
Commercial loans are used for a variety of different scenarios:
Our Online NatWest Loan Calculator
A loan calculator compares loans which are to be paid back between one and twenty-five years. The APR you will have to pay will depend on your circumstances, and can vary from 3.2% and 99.9%. You can compare the cost of various borrowing options by altering the amount required, loan term and interest rate.
You could also enter your personal budget and the calculator will tell you how much you’ll be able to borrow over a given period of time. Loan calculators can be used for all loan types, from home and business loans to secured and unsecured loans.
Help to Buy is a scheme funded by the government that can help first-time buyers to get on the property ladder, with a small deposit of only 5%.
How Does the Scheme Work?
There are two ways you could benefit from this scheme:
These loans are only offered to people that have a mortgage. Sometimes homeowner loans are referred to as a secured loan because the loan is secured, which could be repossessed should payments not be made. This lowers the risk to the lender, which may result in preferential rates of interest, however, presents a huge risk to the debtor who may lose their home if repayments have defaulted.
How Much Can I Borrow?
The amount you can borrow may vary, but homeowner loans are normally available from £10k to £500k. Homeowner loan lenders feel more confident giving loans to borrowers who are prepared to offer higher levels of security.
How Quickly Do I Have to Settle My Homeowner Loan?
Due to the huge amount of credit associated with a homeowner loan, repayments can be spread over a period of up to thirty years. This long-term could mean that debtors could take advantage of low-interest rates, however, remember that more interest will be paid if you chose to take advantage of a longer borrowing term.
Can Homeowner Loans Be Paid off Early?
Yes, there is the opportunity to pay off a homeowner loan early, but doing so might incur an early settlement charge, which will be added to the balance at the time that a settlement figure is requested.
These are bank loans which are used to pay for training that will help with your chosen profession or help you get into work… Professional and career development loans tend to be offered at a reduced rate of interest and the government pays the interest whilst you’re studying.
In order to apply you have to be:
To qualify, a course must:
You cannot get Professional and Career Development Loans for first full-time degrees although you may also be able to apply for student finance in these instances.
Rates of Interest and Repayments
Professional and Career Development Loans are bank loans that have to be paid back. You start repaying the loan, along with interest a month after your course has been completed. The government pays interest whilst you are studying and for a month after leaving your course. Then you start paying off the loan.
A commercial mortgage is used to purchase a business or to purchase business premises. Commercial mortgage lenders usually need a down payment of 25% to 40% of the total value and mortgage terms can run for one year, up to forty years. Applying for a commercial mortgage is based on your company’s ability to make the repayments.
You will find that commercial mortgage lenders will usually examine your company before they quote you an interest rate. Typically they look at past performance, the current position and long-term future strategies. The rate of interest you are given might be based on these variables and might be greater if the underwriter recognises higher risk in the proposal.
You might need to offer a comprehensive business plan which demonstrates that you can make monthly repayments, and a professional appraisal will usually be required.
A mortgage is an enormous financial commitment, so you have to understand just how much it’s going to cost. The most convenient way of doing this is to use an online mortgage calculator which allows you to figure out exactly what your payments are going to be, regardless of if you are applying for a buy to let mortgage, re-mortgaging, a first-time buyer product or moving house.
Regardless of whether you are an experienced investor or a first-time buyer, a mortgage calculator will give you a clear indication of the cost of borrowing when purchasing a new home or buy-to-let property. Online mortgage calculators are
Knowing if you are eligible for a buy to let mortgage from NatWest will help you to make investment decisions. If you are a UK resident between 18-70 years old, have an income of more than £25,000, and have a large enough deposit, then you may be considered. You can’t own more than nine buy to let properties and there are limits on how much money you can borrow. Finally, you must borrow a minimum of £25,000 over three years and the property has to be worth more than £50,000 and be habitable.
NatWest makes it easy to apply for a buy to let mortgage either by making an appointment to come into the office or completing the application online. If you opt to apply online, then you will not be able to ask a staff member specific questions about your application; if you want additional help, then you need to come in. While mortgage lenders will not recommend a specific type of mortgage for you, they will be able to provide you with the information that you need to make a good decision based on your answers to questions. This leaves the final decision up to the borrower.
While many of the financial products and services provided by NatWest can be applied for online, others require in-person meetings or telephone consultations. In any case, we can help you pinpoint and apply for the perfect product for your needs. Give a member of our customer support team a call today, or send us an email with an outline of your loan requirements.