NatWest has announced a move that could cut average new build deposits for residential borrowers by around £20,000.
The high street bank has lifted borrowing amounts for new build homes, which means that these customers will require less of an up-front deposit when making a purchase
Its new maximum loan-to-value rates for new build properties are:
- For new build residential houses — 90% loan to value, up from 85%
- For new build residential flats — 85% LTV, up from 75%
The average price of a new build home in the UK is currently around £394,000, according to Land Registry data,
This could shave £20,000 off the amount homebuyers need to save for a deposit, the bank says.
NatWest head of mortgages Lloyd Cochrane says: “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 homeownership, this change reflects our particular commitment to helping the new build market.”
The lender defines a new build home as one built, first occupied in its current state or significantly modernised, refurbished or altered within the last two years.
A professional valuer will decide whether a building meets this definition at the point of valuation.
