"In line with our broader support for sustainable home ownership, this change reflects our particular commitment to helping the new build market."
- Lloyd Cochrane, head of mortgages at NatWest
NatWest has enhanced its lending criteria to make it easier for borrowers buying a new build property.
The bank has changed its lending policies to increase the amount that residential mortgage borrowers can apply for on a new build property. The change means that borrowers will require less of an up-front deposit when seeking to make a purchase.
For new build residential houses, the new maximum LTV has increased from 85% to 90% LTV, while for flats the maximum LTV is up from 75% to 85%.
With the average price of a new build property in the UK currently around £394,000, according to Land Registry data, the change could offer homebuyers a boost by reducing almost £20,000 off the amount needing to be saved in advance for a deposit.
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 home ownership, this change reflects our particular commitment to helping the new build market.”
