NatWest launches new low deposit deals
Natwest has launched Help to Buy replacement mortgages in advance of the government scheme coming to an end.
The deals are available up to 95% of the property’s value for borrowers with small deposits.
The products are a fee-free two-year fixed rate and fee-free five-year fix for purchase only, at 3.69% and 4.59% respectively, both reverting to a standard variable rate of 3.75% after the introductory term.
The maximum property value is set at £600,000 and the minimum loan size is £25,000. There is no limit on the amount of income an applicant can earn, with repayment allowed on a capital and interest basis only.
In contrast to the Help to Buy scheme, the property being purchased under Natwest’s new range does not need to be the borrower’s main residence. Customers are also permitted to own or have an interest in other properties after completion, such as buy-to-let purchases.
Mark Bullard, head of sales at Natwest Intermediary Solutions said: “With the Help to Buy: mortgage guarantee scheme coming to an end on 31 December, we were keen to continue to support those customers who have a smaller deposit. We have launched these products now, before the scheme ended, to give brokers the certainty that they can carry on catering for those of their customers who are likely to want a higher LTV mortgage.”