LandlordZONE has been shown paperwork that indicates leading mortgage provider NatWest has stopped approving buy-to-let or residential mortgages for anyone who took a Self-Employment Income Support Scheme (SEISS) grant.

This scheme is now closed but was a vital financial lifeline for many freelancers who had temporarily or permanently lost contracts during the Covid lockdown. The decision by NatWest shows that there will be consequences for landlords who took out Covid loans and grants when applying for mortgages.

The move by NatWest covers any freelancer including landlords who received an SEISS grant on or after July 14th, LandlordZONE understands.

Although the government has asked lenders not to downgrade the credit ratings of borrowers who have been in receipt of its various Covid loans during the pandemic, banks appear to be dodging this by building loan and grant decisions into their lending criteria.

NatWest tells LandlordZONE: “We look to understand an individual customer’s circumstances so we can lend responsively and within that we apply different maximum limits to different customer groups based on their individual risk profile.”

We asked leading buy-to-let mortgage broker Dan Lee (pictured) of Total Landlord Mortgages, to comment.

“It is a lender’s duty to assess affordability now and in the future and ultimately if you have taken help from the government be it grants, loans or payment holidays, this is a red flag to a lender that you have been negatively financially impacted by the effects of COVID,” he says.

“Ultimately lending has to be responsible and sustainable for the future.

“Potentially thousands of homebuyers and landlords looking to expand as well as wannabe landlords will not be able to access mortgages that were previously available.

“The question therefore arises how long will the effect of these grants, payment holidays or government loans have a negative impact? We will have to wait and see.”


  1. Yet another example of Landlords being penalised by Lenders and Governments alike. Will there be any future for good Landlords who provide an essential service to tenants who need a home?

  2. yes i am desperate to sell too. Biggest drawback now i am finding is the surveyors. They seem to want to put valuations in so low or retain for reasons which make no sense. Just had one value a 4 bedroom town house £45K less than a middle terrace with same spec which sold in May (£365K). Mine is totally refurbished (new heating/electric/flooring/doors/painted/bathroomx2) and end of terrace ( larger garden) and one of the comments was ‘small garage’ may not fit a car into it! built in the 1960’s all the garages are this size. !! to rub salt into the wound he used this sold property as the price comparison.

  3. Hopefully LL who are needing to sell do so now.
    Stop borrowing from Nat West and put their BTL depts out of business.

    More arrogant lender paranoia.
    Reward their stupid paranoia by leaving Nat West.

    Nat West of course still only in business courtesy of British taxpayers as it is of course part of the incompetent RBS.

    For the 2nd time the English bailed out the incompetent Scots.

    Last time was the failed Darien Gap scheme which ultimately led to the Act of Union.

    The Scots are incapable of managing their economy with English assistance

  4. More mortgage prisoners- b2l or o/o when will the fixed rate and Svr differentials be seen as unfair contract terms Or even age discrimination – which these are

    As my income from b2l was 49% not 50% or more of my total ore covid income I was not qualified fur any help – but my other income collapsed any other time b2l Income is investments .haha


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