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Mortgage Lending

Helping a customer buy and own a home is one of the most significant things we can do for them.

Additionally, supporting our customers if they have trouble paying can make a significant difference to their lives.

More than ever in 2021, we have stepped up to support our mortgage customers through uncertain times.

Mortgage highlights 2021:

New mortgage customers 

  • This year we have helped more than 167,000 new customers complete their mortgage application, totalling over £35bn worth of gross new lending.
  • More than 48,000 of these customers were first-time buyers (*).
  • Digital mortgage applications continue to grow, increasing 59% year on year.
  • In August 2021 we launched our Green re-mortgage product to complement the existing Green Mortgage purchase product which went live in October 2020. Retail Banking Green Mortgage products offer a lower interest rate for customers purchasing, porting or re-mortgaging a property with an EPC rating of A or B, rewarding them for choosing an energy efficient home. In November 2021 Retail Banking extended its Green Product offering to include Green buy-to-let Mortgages. The reduced interest rate for EPC A or B rated buy-to-let properties intends to encourage the purchase of energy efficient rental homes. Retail Banking completed Green Mortgages with a value of £728 million during 2021(*).

Existing mortgage customers 

  • This year more than 217,000 of our existing customers coming to the end of their deal have chosen to take a new deal with us, with over 133,000 of these customers choosing to renew their mortgage digitally.
  • In 2021 we developed functionality to allow customers to get easy access to information on making overpayment and any associated fees.  The customer can then make a payment which will reflect on their mortgage within an hour.
  • In addition, we introduced functionality to automatically roll customers onto new products they selected at point of roll off.
  • Banking My Way ensures customers in vulnerable situations get the support they need each time they contact us.
  • We remain focused on helping vulnerable customers at risk of being financially stretched. We proactively contact customers who:
1. Are on standard variable rate (SVR), who may be financially stretched and may benefit from switching to a fixed rate product.
2. Are coming to the end of a fixed-term deal, to outline the options available to them.
  • Other forms of contact include: 
1. Customers with interest-only mortgages, to offer support when considering their options to repay.
2. Customers who have an offset account but are not benefitting from their offset facility.

Repossessions

Home repossession is always a last resort for NatWest Group, we have a team dedicated to supporting customers in financial difficulty and find the best way to manage this with them. It is our policy to only go ahead with a repossession after all other appropriate options have been explored with the customer.

In 2021, we repossessed 192** properties, compared with 100** in 2020.

Repossessions, although increasing this year, continue to be low due to the continuation of the Covid-19 moratorium. The majority of repossessions were either vacant, or keys handed back.

(*) Within the scope of EY Assurance. See our External Assurance page for details.

** total includes both Personal & Business properties.