NatWest has unveiled significant changes designed to help “as many customers as possible” step onto the property ladder. The prominent high street bank, with branches including those in Birmingham, has introduced shared ownership mortgages—offering greater flexibility for potential homeowners.
Shared ownership enables buyers to purchase a portion of a property, starting from a minimum 25% share, while paying rent on the remaining part that they do not own. NatWest’s new shared ownership mortgage products will be available not only for new purchases but also for remortgaging and staircasing, allowing customers to gradually increase their share in the property. These mortgages will initially be accessible exclusively via mortgage brokers.
Crucially, this shared ownership borrowing is not tied to a specific NatWest mortgage product. It can be applied alongside options such as up to 95% loan-to-value (LTV) on new builds and the green fixed rate mortgage. Additionally, customers with shared ownership mortgages can apply for additional borrowing (ADBO) after completing six successful mortgage payments, primarily to aid staircasing efforts.
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In addition to launching shared ownership mortgages, NatWest has enhanced its lending criteria for customers purchasing new build homes and those taking out interest-only mortgages. Buyers of new build properties can now borrow up to 90% LTV on flats and 95% LTV on houses, reducing the upfront deposit required.
For interest-only mortgages, NatWest has increased borrowing limits, raising the LTV from 50% to 75%. Where repayments are planned through other investments, this limit is further increased to 80%. To qualify for interest-only borrowing, customers need to meet minimum income thresholds—£75,000 individually or £100,000 jointly as a couple.
Lloyd Cochrane, Head of Mortgages at NatWest Group, emphasized the bank’s commitment: “We want as many of our customers as possible to be able to buy their own home. Today’s launch of shared ownership mortgages adds greater choice for customers considering ways to get on the housing ladder. With improved borrowing criteria for new builds and interest-only mortgages, we are helping to bring home ownership within reach for more people, sooner.”