Natwest will now lend up to 90% LTV on residential new-build houses, up from 85% previously, and 85% LTV on new-build flats, up from 75%. 

The bank said this change could lower the deposit required from the average new-build buyer by around £20,000, based on the average new-build property price of £393,888 as of February this year. 

This would bring the 15% deposit of £59,083 previously needed down to a 10% deposit of £39,388. 

Lloyd Cochrane, head of mortgages at Natwest, said: “We’re committed to continually improving what we can offer customers, making mortgages faster to access and more flexible to their needs.

“In line with our broader support for sustainable homeownership, this change reflects our particular commitment to helping the new-build market.” 

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Natwest defines a new-build property as one that was built and first occupied in its current state or “significantly modernised, refurbished or altered” in the last two years. A professional valuer will determine whether a home meets this definition. 

Last week, it was announced that Natwest had taken over Sainsbury’s Bank, which would see its customer base grow by around one million. 

The lender also recently announced reductions in its new business rates by as much as 0.17%. 

Natwest is currently in the process of returning to full private ownership, and in March it was announced that the government no longer had a controlling share in the bank.