This announcement comes after it was revealed that the scheme which was set to end this year would be extended until 31 December 2023.
The initiative was launched in April last year to bring confidence back to the high LTV market after several lenders stopped lending at this tier.
Under the scheme, the government compensates lenders for a portion of the net losses in the event of a possession, which reduces the risk attached to lending to borrowers with less equity.
As of June 2022, it has supported 24,153 completions at a value of £4.4bn. Some 85 per cent of borrowers have been first-time buyers.
Natwest’s replacement products at 95 per cent LTV have the same pricing as the withdrawn deals; the two-year fix has a rate of 6.4 per cent while the five-year fix has a rate of 5.8 per cent.
Both have no product fee and offer £750 cashback.
Skipton BS reduces rates
Skipton Building Society has reduced rates for borrowers buying new-build homes and using government schemes by as much as 70 basis points.
Rates have also been cut for standard residential and buy-to-let borrowers.
Pricing for existing borrowers have seen the largest reductions, including the fee-free five-year fix at 60 per cent LTV which now has a rate of 4.49 per cent.
Mortgages for new-build homes have been cut by up to 0.42 per cent, including the five-year option at 95 per cent LTV which has a rate of 5.77 per cent. This has no fee and offers £500 cashback.
The mutual has also launched a two-year tracker mortgage for buy-to-let borrowers at 75 per cent LTV and a rate of 4.61 per cent. This has a fee of £1,955 and comes with no early repayment charges.
Charlotte Harrison, head of mortgages at Skipton Building Society, said: “Having reduced interest rates on our residential and buy-to-let mortgage products last week, we’re making moves this week to ensure there’s a competitive product available for new build buyers, as well as first time buyers using government-backed schemes like Help To Buy and First Homes.
“And we’re thanking our existing customers for their loyalty too, by reducing rates by as much as 0.70 per cent on products available to them. That means they can take advantage of market-leading value if and when they’re looking to switch products or move home.”
