In its annual results, NatWest said the adjustment to mortgage rules allowed it to lend to more first-time buyers and it wanted to grow its support. New homeowners made up 30% of gross mortgage lending in 2025, and the group attributed some of this to its Family-Backed mortgage, which accounted for around £300m of lending.
NatWest’s Family-Backed product was launched in April last year, a joint borrower sole proprietor (JBSP) mortgage that enables first-time buyers to apply for a mortgage and use the income of a family member or friend for affordability.
NatWest revealed that the value of its mortgage book sat at £215bn at the end of 2025, up from £210bn the year before.
The bank supported 200,000 new borrowers to buy or remortgage a home last year, an 18% uplift on the year before. It also had a UK mortgage market share of 12.5%.
The value of owner-occupied mortgages was £193bn, while £22bn was buy-to-let (BTL). The average loan-to-value (LTV) ratio of its owner-occupied mortgage book was 57%, similar to the previous year’s 56%.
Click here to view our Sponsored Content Hub
Some 0.4% of its book was in up to three months of arrears, down from 0.63% in 2024 and lower than the industry average of 0.83%.
A greener mortgage portfolio
NatWest also shared plans to make its mortgage book greener, revealing that as of 31 December 2025, 48.8% of its portfolio had an Energy Performance Certificate (EPC) rating of C or better, an improvement from 46.3% the year before.
The group aims to have an EPC of C or higher across 50% of its UK residential mortgage portfolio by 2030, where EPCs are available.
Profit and income rise
NatWest Bank reported a 14% growth in its income to £13.6bn, supported by fees, volumes and margin.
Its net interest income was 8% higher than the previous year, at £9.7bn.
The bank’s operating profit jumped 23% to £4.2bn.
Paul Thwaite, CEO of NatWest, said: “NatWest Group delivered another strong year in 2025, rooted in our support for people, families and businesses in every nation and region of the UK.
“2025 also marked a symbolic milestone as we returned to full private ownership, offering an opportunity to reflect on how far the bank has come. Looking ahead, we have renewed confidence in what we can achieve for NatWest Group, our shareholders, and as a trusted partner to our customers and the wider UK economy.”
He added: “I’m proud to have led this bank over the past two years. In this time, we’ve moved decisively: we’ve sharpened our customer focus; simplified the organisation; accelerated our technology strategy; and invested with intent in our future. These choices are now translating into robust performance and clear momentum across NatWest Group.
“We start 2026 from a position of strength. That strength gives us the confidence to raise our ambition and accelerate our progress – so we can go further to win together with our customers, colleagues, shareholders and the communities we are proud to serve across the UK.”
