You might be considering a debt consolidation loan and wondering if the NatWest debt consolidation loan is the right way to turn.
National Westminster Bank, also known as just NatWest, is one of the UK’s big four banks with over seven million customers. Despite NatWest not being as old as some of the other well-known UK banks, it remains one of the most popular.
They offer a selection of current accounts and savings products, and they even offer NatWest debt management products, including the NatWest debt consolidation loan.
Hold On, What’s Debt Consolidation?
Debt consolidation is a debt mitigation strategy used in the early stages of debt. If your debt has already materialised and you can’t keep up, you will be better off using debt solutions.
Debt consolidation is for people with several debts that they are struggling to repay, usually personal loans, credit cards or store cards. By obtaining more credit to pay off these debts, you can consolidate all debts into one new debt.
But it is only worth doing if your new credit/debt has more affordable repayment terms. Before deciding on debt consolidation, you must do your research or speak with a debt charity for advice.
That Makes the NatWest Debt Consolidation Loan…
One way of consolidating debts is through a loan. You take out the loan and use the money to pay off your other debts, so you now only have to pay back the loan at more favourable terms. It isn’t always as easy as it sounds to find a debt consolidation loan, but NatWest do offer them.
The NatWest debt consolidation loan is not exactly advertised as such, and is really just a personal loan. Few banks in the UK advertise loans for specific purposes, but it doesn’t really make a difference.
The loan you can apply for can be from £1,000 all the way up to £50,000. However, if you are trying to consolidate such large amounts, there may be better debt solutions to use than debt consolidation.
One of the best things about NatWest’s debt consolidation loan is that some customers will be able to start with a three-month repayment holiday, meaning you don’t have to make a repayment within the first three months. This can be handy if you are trying to catch up on your debt repayments.
Who Can Apply for a NatWest Debt Consolidation Loan?
To apply for the NatWest debt consolidation loan, you must be at least 18 years old and live in the UK. This is slightly more accessible than some other providers who require you to be at least 21 years old. However, only NatWest bank account holders can apply for their consolidation loan and you can’t apply if you have made an application for credit with them in the previous 28 days.
And you won’t be able to just open an account and then apply either. You must have held one of their bank or savings accounts for at least three months before applying for the personal loan.
Will NatWest Complete a Credit Check?
NatWest state that in most cases they can provide an accurate quote without checking your credit score. This doesn’t mean they won’t check your credit score, but it can give you peace of mind to apply without worrying that your score can be marked and prevent you being successful for a personal loan elsewhere.
The reason they can do this is usually that they have a good idea of your finances since you already bank with them.
What’s the NatWest Debt Consolidation APR Rates?
The representative APR advertised by NatWest is 3.9% on loan amounts between £7,500 to £19,950. This is one of the highest representative rates out of the big banks with others, including Santander, charging 3%.
However, you must note that this is a best-case scenario and the rate you will receive may be much more than this. The maximum APR rate you can be charged by NatWest is currently 29.9%, which is also higher than many other big banks and building societies.
Is There a NatWest Debt Consolidation Loan Calculator?
Yes, there is a personal loan calculator that you can use for free on the NatWest website. You can even select debt consolidation as the reason for wanting the loan from the dropdown list on the calculator, which may change the results.
But remember that the calculator doesn’t provide concrete terms to what your loan may be. Often these calculators can make you believe your terms will be better than they are, and thus, often work as a marketing tool.
How Long Can I Have to Repay the Personal Loan?
How long you get to repay a NatWest debt consolidation loan is determined by how much you borrow. For amounts up to £7,450, you can have up to five years or as little as two years. And amounts up to £50,000, you can have up until eight years.
There is an option to repay early if desired.
How Do I Apply for a NatWest Debt Consolidation Loan?
Applications must be completed online on the NatWest website. If your loan is accepted then you could get the money on the same day before 6pm.
Should You Apply for Their Loans (The Money Nerd Opinion!)
There are some good things about the debt consolidation loan available at NatWest. The best of the best is the possibility of a repayment holiday lasting three months. This could help debtors get back on track and avoid their debts spiralling out of control.
However, there are some not so good things, such as the slightly higher representative APR rates and that these loans are only available to NatWest customers for at least three months.
Our advice? Shop around first, and speak with debt charities to make sure debt consolidation is right for you.