In this brief guide, we are going to talk about the Natwest mortgage holiday, how to get a Natwest mortgage holiday and what you should be aware of.

What is the Natwest mortgage holiday?

The NatWest mortgage holiday is a mortgage repayment holiday which Natwest offers to eligible customers.

What is a mortgage payment holiday?

A mortgage payment holiday is when you and your mortgage lender agree for you to stop making your monthly mortgage repayments or to make a reduced monthly mortgage repayment for a fixed term. Once the mortgage payment holiday term is over you will have to continue making your monthly mortgage repayments as usual.  

Some mortgage lenders will only allow you to take a mortgage payment holiday if you have previously overpaid on your mortgage but if you are struggling to make your monthly mortgage repayments then most mortgage lenders may be willing to offer you a mortgage payment holiday so you can get your finances back in order.

Can you take a mortgage payment holiday?

Yes, with most mortgage lenders you can take a mortgage payment holiday. This means you will stop making your monthly mortgage repayments for a given time or in some cases you will make a reduced monthly mortgage repayment before resuming your full mortgage repayment after the mortgage payment holiday is over. Some mortgage lenders may require that you have previously overpaid your mortgage before they will allow you to take a mortgage payment holiday but if you are struggling to keep up your monthly mortgage repayments then you will find that a lot of mortgage lenders will be willing to offer you a mortgage payment holiday.

What is a Natwest mortgage holiday?

A Natwest mortgage holiday is when you take a break from making your usual monthly Natwest mortgage repayments.  You may want to take a Natwest mortgage holiday if you have just lost your job or gone into financial difficulty which makes it very likely you may miss some of your upcoming Natwest monthly mortgage repayments. If this is the case then you may want to consider asking Natwest for a mortgage holiday.

Does Natwest do mortgage holidays?

Yes, Natwest does offer the Natwest mortgage holiday which can last up to 3 months in total over the term of the mortgage.

To apply for a Natwest mortgage holiday you will need to meet the below requirements as of writing:

  • “Your ability to pay your mortgage has been affected by the Coronavirus
  • You’re up-to-date with all of your monthly mortgage payments
  • You have consent from everyone named on the mortgage
  • You submit your application before 31st October 2020
  • Some non-standard mortgage types are excluded, contact Natwest for more details.”

Can you take a Natwest mortgage holiday?

Yes, you can take a Natwest mortgage holiday but there is no guarantee that Natwest will approve your application for a Natwest mortgage holiday. To start the process you will need to make an application online.

Once you have made a Natwest mortgage holiday application then Natwest will review it and confirm when your Natwest mortgage holiday will take effect.

If you have a monthly mortgage repayment due in 14 days then Natwest may not be able to amend this payment but will confirm this via email.

Here are some things to consider before applying for a payment holiday:

  • At the end of the mortgage holiday, your monthly payments will be recalculated and you will see an increase in your monthly payments. 
  • The total amount of interest you pay over the term of the mortgage will increase.
  • Your mortgage term will not be extended.

Does Mortgage Holiday affect credit rating?

A mortgage holiday will affect your credit file as it will be noted that you didn’t make those monthly mortgage payments although they won’t be marked as missed mortgage repayments.

This may affect your ability to get credit in the future.

Can I view my Natwest mortgage online?

Yes, you can view your Natwest mortgage online if you are registered for online banking. Once you sign in you should be able to see information about your mortgage sich as your outstanding balance, your monthly payment history, your interest term and the remaining term on your mortgage.

Online Banking is available 24 hours a day, 7 days a week, 365 days a year.

Can I pay off my Natwest mortgage early?

Yes, you can pay off your Natwest mortgage early and you can also make a mortgage overpayment of p to 10% of your outstanding mortgage balance each year without incurring any early repayment charge.

Can you port Natwest mortgage?

You may be able to port your Natwest mortgage if you want to move homes. To see if you are eligible you should contact Natwest mortgages. Natwest may take you through their mortgage affordability checks to see if you are eligible.

Managing your Natwest mortgage

Managing your mortgage

As a mortgage holder managing your mortgage is one of the key things you will need to do to ensure you have a balanced financial wellbeing. Managing Your Mortgage doesn’t mean getting an excel sheet and trying to work out how much you owe your mortgage lender, what the mortgage balance is and how long it will take for you to repay the mortgage and be mortgage free.

Looking for the Natwest mortgages login page and having a look around isn’t the best way to manage your mortgage.

Managing your mortgage should be a passive thing. There is so much technology available now that you should be able to easily manage your mortgage with very little work and without having to search for the Natwest mortgages login page.

What does managing your mortgage mean?

Managing your mortgage means knowing all the key facts about your mortgage in an easy to view straightforward medium. 

This means knowing when your next monthly mortgage repayment comes out, how much you pay each month, what your Natwest mortgage balance is, when your Natwest mortgage is due to be paid off, how much you can save by overpaying your mortgage and how much you will need to overpay your Natwest mortgage by, how much interest your Natwest mortgage costs you each month and each year, how much equity you have in your property, if you are eligible for a remortgage, what mortgage lenders may be willing to lend to you and how much you could save by remortgaging.

This is what mortgage management means and searching for the Natwest mortgages login page and the contents within the Natwest mortgage dashboard will not give you access to this information.

Alternatives to a Natwest mortgage holiday

If you are struggling to make your monthly mortgage repayments then there are few alternatives than seeking a Natwest mortgage holiday.

Support for mortgage interest

With support for mortgage interest the government will pay the interest portion of your mortgage for a fixed amount of time. This is a loan which you must pay back when you sell the home. To get support for mortgage interest you will need to be eligible for other benefits.

The other alternatives are solutions which you may have taken out in the past but unfortunately may not be able to access if you are already in financial hardship and unable to make your monthly mortgage repayments.

Mortgage insurance

Mortgage insurance can help you cover the costs of your monthly mortgage repayments if you lose your job, become ill or injure yourself. There are two main types:

Income protection insurance usually pays a percentage of your monthly salary (e.g. 65%)

Mortgage protection insurance usually pays an agreed amount per month (e.g. £2,000)

In this brief guide, we discussed the Natwest mortgage holiday. If you have any questions or comments please let us know.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.