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NatWest vs Santander Remortgage: Which Lender Should You Choose?

NatWest and Santander are both major UK mortgage lenders with competitive remortgage ranges, but they take noticeably different approaches to certain borrower types. NatWest offers green mortgage incentives and existing customer benefits, while Santander stands out for its acceptance of self-employed applicants with just one year of trading history. This guide compares the two lenders to help you identify which is the better fit for your remortgage.

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Overview: NatWest and Santander

NatWest (National Westminster Bank) was founded in 1968 through a merger of National Provincial Bank and Westminster Bank. It is majority-owned by the UK government following the 2008 financial crisis rescue, though the government's stake has been progressively reduced over time. NatWest operates one of the UK's largest branch and ATM networks and has a substantial mortgage book, with products available through its own channels and via the broker market. Through its NatWest Group ownership, it is a sibling of Royal Bank of Scotland, which sells broadly similar mortgage products under a different brand, primarily in Scotland.

Santander UK was created through a series of acquisitions, most notably the purchase of Abbey National in 2004 and Bradford & Bingley's savings and branch network in 2008. The UK business is a wholly owned subsidiary of Banco Santander SA and operates as an independent entity regulated by the FCA and PRA. Santander has a significant mortgage book and is well established as a remortgage lender, with products available both through its own branches and via brokers. Its network of branches is smaller than NatWest's, but its digital and telephone channels are well developed.

Both lenders are mainstream, high street operations offering the full range of remortgage products including two-year and five-year fixed rates, ten-year fixes, and tracker mortgages. Their key differentiators lie in pricing at specific LTV bands, self-employed criteria, and their respective loyalty and sustainability-focused product features.

Rate and Fee Comparison

Santander has a long-standing reputation for consistent competitiveness across its remortgage range. It tends to be particularly strong at 75-85% LTV, where it frequently offers rates that compete with or beat the large building societies. Santander's fee structure includes both arrangement fee options (commonly around £999) and fee-free products, and it regularly runs cashback promotions on specific products. The combination of competitive rates at mid-to-higher LTV bands and flexible fee structures makes Santander a go-to choice for many brokers when clients are remortgaging with moderate equity levels.

NatWest's pricing is broadly competitive across its range, with particular attention to its Green Mortgage products, which are available on energy-efficient properties with an EPC rating of A or B. These Green Mortgage products often carry a cashback incentive — typically several hundred pounds — in addition to competitive rates, making them attractive for borrowers whose properties meet the criteria. NatWest also offers preferential rates and a streamlined remortgage process for existing NatWest current account customers, recognising the additional loyalty and data insight that comes with a banking relationship.

For borrowers without a NatWest banking relationship and with a property that does not qualify for the Green Mortgage cashback, the headline rate comparison between NatWest and Santander at similar LTV bands tends to be close. The arrangement fee and overall cost calculation — factoring in free legal work and free valuation offers on both sides — should be the deciding factor at that point.

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Eligibility and Criteria

Santander is widely regarded as one of the more accommodating lenders for self-employed borrowers. While most mainstream lenders require at least two years of certified accounts or SA302s for self-employed applicants, Santander will consider applications from self-employed borrowers with just one year of trading accounts in certain circumstances. This is a significant differentiator that can make Santander the only realistic mainstream option for borrowers who recently became self-employed or who changed the structure of their self-employment. Santander also takes a generally pragmatic approach to assessing self-employed income, using the latest year's net profit and salary rather than always averaging over multiple years.

NatWest takes a more standard approach to self-employed income, generally requiring two years of evidence. Where NatWest stands out on criteria is in its approach to existing customers — holding a NatWest current account and maintaining good account conduct can smooth the path through underwriting and sometimes unlock slightly preferential product options. NatWest is also well set up to handle more complex employed income scenarios, including those with significant bonus or commission components.

Both lenders operate across the standard LTV range for residential remortgages, with products available up to 85% LTV in most cases. Neither lender is known as a specialist for adverse credit, and both require a clean or near-clean credit history for their mainstream products. For borrowers who are self-employed or who changed employment status recently, Santander is typically the stronger option of the two.

Application Process and Service

NatWest's remortgage application process is available through direct channels (online, telephone, and branch) and through the broker market. NatWest has invested heavily in its digital mortgage proposition and many straightforward applications can be progressed largely online. AVMs are used for eligible properties, reducing the need for physical valuations and speeding up completion timescales. NatWest's broker support function is well regarded, and the lender has a dedicated intermediaries team that advisers can use to discuss complex cases before submitting.

Santander's application process is similarly structured, with direct and broker routes available. Santander has been through periods of slower-than-average processing times in the past, though significant operational improvements have been made. The lender is generally well regarded in the broker community for its self-employed criteria and for the consistency of its decision-making. Santander offers free legal work and free valuation on most remortgage products, keeping the out-of-pocket costs low for customers switching from another lender.

In terms of customer satisfaction, both lenders receive broadly average scores in independent surveys, with no particularly outstanding performance in either direction. The most significant service consideration for most remortgage customers is speed — both lenders can typically complete a straightforward remortgage in four to eight weeks, though complex cases or periods of high application volume can extend this timeline. Using a broker who actively manages the case through to completion is the most effective way to maintain momentum.

Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.

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Frequently Asked Questions

Yes, Santander is one of the few mainstream lenders that will consider remortgage applications from self-employed borrowers who have only one full year of trading accounts in certain circumstances. This makes Santander particularly valuable for recently self-employed applicants. Eligibility will still depend on the income level, LTV, and overall credit profile, so speaking to a broker first is advisable.

NatWest offers cashback on its Green Mortgage products, which are available to borrowers whose property has an EPC (Energy Performance Certificate) rating of A or B. The cashback amount varies by product and may change periodically. It is designed to reward borrowers who own energy-efficient homes and to incentivise green home improvements. If your property qualifies, it can represent meaningful additional value on top of a competitive rate.

Santander has historically been strong at 75-85% LTV, making it a frequent recommendation from brokers for borrowers remortgaging with limited equity. NatWest is competitive across a broad range of LTV bands but tends to shine particularly on lower LTV products for existing customers and on green mortgage eligible properties. Current rates should be compared side by side given your specific loan amount and property value.

Yes, and there may be advantages to doing so. NatWest uses current account conduct data to assist with its affordability and credit assessment for existing customers, which can sometimes smooth the underwriting process. NatWest also periodically offers slightly preferential product options for existing banking customers, though these are not always available. A broker can compare the NatWest offer for existing customers against the wider market to confirm whether the loyalty benefit is worth more than switching to a different lender.

Yes, both lenders distribute their remortgage products through the whole-of-market broker network as well as directly. Using a broker is particularly valuable when comparing these two lenders for self-employed income scenarios, as a broker can assess which lender's income assessment methodology is most favourable for your specific income structure before you make any formal applications.

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