NatWest has launched a shared ownership mortgage, aiming to provide greater accessibility and flexibility to aspiring homeowners.
Shared ownership allows customers to buy a percentage of their home.
NatWest will lend to customers to fund purchases from a minimum of a 25 per cent share, whilst paying rent on the proportion of the house that they do not own.
Over time customers have the option to purchase additional shares to increase their share of the property.
NatWest head of mortgages, Lloyd Cochrane, said: “We want as many of our customers as possible to be able to buy their own home.
“Today’s launch of Shared Ownership mortgages means we are bringing more choice for customers who are thinking about the ways in which they can get on the housing ladder
“We have also made improvements to our borrowing criteria meaning customers can buy a new build flat or house with a lower deposit.
“Together these changes mean we can help to bring the dream of home ownership within reach of more customers sooner.”
The lender also said its shared ownership mortgages will be available to customers making new purchases and remortgaging, inclusive of staircasing scenarios.
Shared ownership mortgages will initially be made available exclusively via mortgage brokers.
It also specified that shared ownership borrowing is not linked to any individual NatWest product and is available on mortgages such as up to 95 per cent loan-to-value on new builds and the green fixed rate option.
“The shared ownership launch today is focused on the intermediary market as this is where 94 per cent of customers go for advice based on our research,” Cochrane explained.
“This allows intermediaries across the industry, but particularly those focused on the new build market, to offer their customers a wider range of options to get on the housing ladder.”
Further enhancements
NatWest also announced enhancements to its lending criteria for customers purchasing new build property and taking out interest-only mortgages.
From today (November 11), mortgage customers purchasing new builds will be able to access 90 per cent loan-to-value borrowing on flats and 95 per cent loan-to-value on houses.
The lender will also increase the loan-to-value borrowing limits on interest-only mortgages from 50 per cent to 75 per cent where the sale of the property is the main repayment strategy.
To be eligible for interest-only borrowing customers need to earn a minimum of £75,000 individually or £100,000 as a couple.
tom.dunstan@ft.com
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