NatWest Intermediary Solutions will start accepting applications from intermediary clients using the Government’s mortgage indemnity scheme NewBuy for the first time and has launched two products for the shared equity element of Help to Buy.
From tomorrow, intermediary borrowers will be able to choose from two specific Help to Buy shared equity products: a two-year fixed rate at 3.15 per cent and a five-year fixed rate at 3.59 per cent, both of which have no product fees.
Royal Bank of Scotland, NatWest’s parent lender, has never offered Help to Buy products before, either direct or through intermediaries. However, RBS has previously distributed NewBuy mortgages direct.
In February, Money Marketing’s sister title Mortgage Strategy revealed RBS was looking to distribute its NewBuy mortgages through intermediaries.
NatWest is launching two specific NewBuy products: a two-year fixed rate at 4.49 per cent and a five-year fixed rate at 4.79 per cent, both of which have no product fees. These two products are the same loans that are offered to direct customers.
The NewBuy products are only available to intermediaries on the selected panels of participating builders and developers.
NatWest head of sales Mark Bullard says: “Schemes that give first-time buyers a helping hand are very welcome and we are pleased that we will be participating in both the Help to Buy and NewBuy schemes. We have been an active supporter of previous shared equity schemes and have had products specifically designed for this sector.
“We have continued to support the first-time buyer market with the 90 per cent LTV deals available in our range and criteria such as accepting gifted deposits and allowing multiple applicants. Being able to add the NewBuy scheme into our offering is pleasing as it means we are able to have a presence in the intermediary sector for the vast majority of first-time buyer scenarios.”
In the March Budget, chancellor George Osborne launched two new measures, known collectively as Help to Buy, designed to build on the Government’s existing mortgage indemnity and shared equity schemes, NewBuy and FirstBuy.
The Help to Buy initiative comprises a £130bn mortgage indemnity guarantee scheme, which was first revealed by Mortgage Strategy in February and is to launch in January 2014, and a £3.5bn commitment towards shared equity loans over the next three years.
NewBuy offers lenders a 15 per cent guarantee on new-build homes where borrowers provide a 5 per cent deposit up to £500,000. The MIG element of Help to Buy also offers lenders a 15 per cent guarantee for borrowers with 5 per cent deposits but is available on all homes worth up to £600,000.