Portable and proportionate incentives, for example curtains and carpets, and other financial incentives such as support with upfront costs or enhanced part exchange terms can be accepted in the 5% allowance.
Non-standard items such as an upgraded kitchen or integrated appliances can be accepted as an incentive but do not need to be included in the allowance.
It will be the responsibility of the valuer to decide which incentives are included in the calculation.
Customers who have already submitted an application and who have not yet completed will be able to include up to 5% of builders’ incentives.
Sarah Taylor, service development manager for NatWest Intermediary Solutions, said that new build is anticipated by many to be an area of growth in 2016 and that the company has an appetite to grow its presence in this sector of the mortgage market.