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Natwest to launch new 95% Products.

22 November 2016

Natwest

Today, Tuesday 22 November, Natwest are launching two new 95% LTV purchase mortgages that will replace the current 95% LTV deals being offered as part of the Help to Buy: mortgage guarantee scheme, which is coming to a close at the end of the year.

  • 2 year fixed rate purchase - 3.69% (APRC 3.8%, SVR 3.75%), £0 product fee [FO13572]
  • 5 year fixed rate purchase - 4.59% (APRC 4.2%, SVR 3.75%), £0 product fee [FO13573]

These deals are priced the same as their existing 95% HTB products, however by having these as stand alone products Natwest have removed the constraints of the HTB scheme…

  • These products are available to first-time buyers and existing home owners who are buying properties for residential purposes.
  • The maximum property value is £600,000 (giving a maximum loan of £570,000)
  • There’s no limit on the amount of income an applicant can earn and repayment must be on a capital and interest basis only.
  • Property being purchased does not require to be the applicant’s main residence e.g. it can be a second home
  • Customers are permitted to own or have an interest in other properties after completion e.g. buy-to-let
  • Natwest will allow consent to let where applicable
  • Further advances are allowed (previously not allowed for 7 years under HTB)

Overpayments:

  • Up to 10% of the outstanding balance per annum are allowed during the initial deal period.

Early repayment charges:

  • 2 year fixed rate: 2% until 31 January 2018, 1% until 31 January 2019
  • 5 year fixed rate: 5% until 31 January 2018, 4% until 31 January 2019, 3% until 31 January 2020, 2% until 31 January 2021, 1% until 31 January 2022

Minimum loan amounts:

  • £25,000

For further information, please see their website.


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