NatWest Intermediary Solutions is launching new Mortgage Guarantee Scheme products for intermediaries.
The new scheme allows first time buyers and those wanting to move home a chance to do so, using a 5% deposit.
The new Mortgage Guarantee scheme will offer both two and five-year fixed rates at 95% LTV. The maximum purchase price of the properties will be £600,000 and cannot be repaid on an interest-only basis.
For the mortgage to be eligible for the new scheme, it will need to:
- be a residential mortgage, not a second home and not buy-to-let
- not be a new build property – which is any property built, first occupied in its current state, or significantly modernised, refurbished or altered within the last 2 years.
- be taken out by an individual or individuals rather than an incorporated company
- have a loan to value of between 90% and 95%
- pass NatWest standard risk assessments e.g. affordability and credit checks
In addition, on 2 June NatWest is implementing a change to its buy-to-let offering, with the current requirement for an applicant to have £25k per annum income being removed.
