Required deposit on an average new build property cut by nearly £20,000
NatWest has announced a new measure aimed at facilitating homeownership for customers purchasing new build properties.
The bank has revised its lending policies to increase the loan-to-value (LTV) ratio for residential mortgage borrowers buying new build homes, reducing the required upfront deposit for such property purchases.
The new maximum LTV rates for new build properties are 90% LTV, up from 85%, for residential houses; and 85% LTV, up from 75%, for residential flats.
With the average price of a new build property in the UK currently around £394,000, according to Land Registry data, the adjustment could lower the required deposit by nearly £20,000.
A new build property is defined 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.
“We’re committed to continually improving what we can offer customers, making mortgages faster to access and more flexible to their needs,” said Lloyd Cochrane, head of mortgages at NatWest.
“In line with our broader support for sustainable homeownership, this change reflects our particular commitment to helping the new build market.”
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