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.
The products are a two-year fixed rate and 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. There are no product fees on the deals.
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.
Borrowers purchasing a new build property will not be granted access to the mortgages, with Natwest pointing these customers towards products in its Help to Buy shared equity scheme range.
Mark Bullard, head of sales, 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.”