Through its newly added shared ownership range, NatWest will allow borrowers to access loans to buy a minimum share of 25% of a home. Borrowers will be able to staircase over time to increase their share of the property.
The shared ownership mortgages will be open to new borrowers purchasing and remortgaging, inclusive of staircasing, and will be available exclusively through mortgage brokers.
NatWest said its shared ownership mortgages were not linked to any product, and it will allow shared ownership borrowing on mortgages up to 95% loan to value (LTV) on new builds and its green fixed rate options.
Shared ownership borrowers will also be able to apply for additional borrowing after making six successful mortgage payments and this will initially be limited for staircasing purposes only.
NatWest has also updated its lending criteria for borrowers buying a new-build property and taking out interest-only mortgages.
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Borrowers will be able to borrow up to 90% LTV on new-build flats and 95% LTV on new-build houses.
The maximum LTV for interest-only has also been increased from 50% to 75% where the sale of the property is the main repayment strategy, and from 75% to 80% where other investments are part of the repayment strategy.
Individual borrowers must be earning at least £75,000 and joint borrowers must earn a minimum of £100,000 to be eligible for interest-only borrowing.
Lloyd Cochrane, head of mortgages at NatWest Group, said: “We want as many of our customers as possible to be able to buy their own home. Today’s launch of shared ownership mortgages means we are bringing more choice for customers who are thinking about the ways in which they can get on the housing ladder.
“We have also made improvements to our borrowing criteria, meaning customers can buy a new-build flat or house with a lower deposit. Together, these changes mean we can help to bring the dream of homeownership within reach of more customers sooner.”
Yesterday, the bank added 11 buy-to-let (BTL) products.
