NatWest to launch Mortgage Guarantee Scheme products | Mortgage Introducer

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The government-backed scheme allows first-time buyers and those wanting to move home a chance to do so with just a 5% deposit.

NatWest previously signalled its intention to launch the scheme for intermediaries, after it had implemented changes to its application system to provide agreements in principle (AIPs) with a soft footprint for customers.

The lender will offer both 2 and 5-year fixed rates at 95% loan-to-value LTV.

The maximum purchase price of the properties will be £600,000 and cannot be repaid on an interest-only basis.

The products will not be available for second homes, buy-to-let (BTL) properties, new-builds, or incorporated companies.

The LTV must be between 90% and 95%, and the loan must pass NatWest’s standard risk assessments, such as affordability and credit checks.

On 2 June the lender will also implement a change to its BTL offering, removing its requirement for an applicant to have £25,000 per annum income.

A BTL customer will no longer require a minimum income level to apply for a BTL mortgage, a change which applies to all application types.

The NatWest BTL affordability calculator will be updated to reflect this change from 2 June.