NatWest Increases Maximum LTVs for New Builds

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, thereby reducing the required upfront deposit for such 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. This significant change means that borrowers can now secure new build houses with just a 10% deposit and new build flats with a 15% deposit.

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, making homeownership more accessible.

“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.”