NatWest Intermediary Solutions has confirmed it will be entering the Help to Buy mortgage guarantee scheme on 14 January with a new details of which details will be revealed next week.
The mortgage guarantee scheme makes it possible to purchase a pre-owned or new build property under £600,000 with a 5 per cent deposit of the purchase price.
In October, Virgin Money and Aldermore confirmed they will participate in the £12bn initiative. The Royal Bank of Scotland, Lloyds, HSBC, Barclays, Halifax and Santander are also offering loans under the scheme.
The first part of Help to Buy, the equity loan scheme, was designed to provide £3.5bn of additional investment to help people into home ownership, helping up to 74,000 home buyers as well as providing a boost to the UK’s construction sector, according to the government.
The government will provide an equity loan worth up to 20 per cent of the value of the new build home, interest-free for the first five years, for first-time buyers that can provide a 5 per cent deposit. The scheme is only available for new-builds.
The Treasury Select Committee previously revealed it is concerned Help to Buy will drive a housing bubble that could pose a “threat” to financial stability.
Graham Felstead, head of NatWest Intermediary Solutions, said: “It’s great to start the New Year with some positive news like this.
“We have supported intermediaries with mortgages for the government’s first Help to Buy scheme, NewBuy scheme and previous shared equity schemes, so I am delighted that we are now able to provide brokers with the opportunity to help more clients who don’t have a large deposit.”
