Secured Loans from NatWest

If you’re an existing NatWest mortgage holder, you may be able to take advantage of additional borrowing, allowing you to take out a second loan that’s secured against your home, completely separate to your existing mortgage. You may also hear this loan be called a “second charge mortgage”.

Because the loan is secured against your property, the lender is far more secure meaning they are willing to offer you much better rates, the ability to borrow large amounts and over a longer period of time than what you would with unsecured borrowing. The rate you get is influenced by a variety of factors, but more times than not a secured rate is always better than unsecured because of the security element.

Loan-To-Value Ratio

For lenders such as NatWest to determine how much they’re willing to lend you, they look at what’s called the loan-to-value (LTV) ratio. And it looks at the loan you wish to take out plus the total value of your existing mortgage versus the market value of your property.

For example, if your home’s market value was £100,000 and the lender is willing to allow an LTV of 80%, you could borrow a total of £80,000. If your existing mortgage was £50,000, your additional borrowing can be up to £30,000.

Benefits of NatWest Secured Loans

• Can borrow up to an LTV Ratio of 90%
• Ability to make fixed monthly repayments
• Repay over 3-35 years

Restrictions on NatWest Secured Loans

• £10,000 minimum loan
• Can’t be older than 70 years old
• Your home may be at risk if you are unable to make your repayments