Natwest cuts LTV rates

Natwest cuts LTV rates

Lower rates are available on two, three and five-year fixed rate higher loan-to-value residential mortgages for first-time buyers and buy-to-let at NatWest Intermediary Solutions from tomorrow (29 January).

The lender’s two-year fixed rate for 90 per cent LTV, with a £995 product fee, will reduce from 2.91 per cent to 2.5 per cent.

The two-year fixed rate for 90 per cent LTV and no product fee will be cut from 3.45 per cent to 2.98 per cent.

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The two-year fixed rate Help to Buy mortgage guarantee scheme deal at 95 per cent LTV with no product fee will decrease from 4.24 per cent to 3.79 per cent.

Mortgages for first-time buyers only will see the two-year fixed rate at 90 per cent LTV and no product fee cut from 3.39 per cent to 2.94 per cent, and the lender’s five-year fixed rate at 90 per cent LTV with no product fee reduced from 4.09 per cent to 3.6 per cent.

Mark Bullard, head of sales at NatWest Intermediary Solutions, said: “We have long supported first-time buyers and home buyers with smaller deposits with a good range of appropriate mortgages, that includes the government’s Help to Buy schemes.

“The changes we are introducing provide further evidence of our commitment to this important sector of the mortgage market.”

Daniel Bailey, mortgage broker at Middleton Finance in Derbyshire, said: “Mortgages used to be in their 4 per cent and 5 per cent (region) for 90 per cent LTV.

“It is fantastic for first-time buyers and home-movers and is going to have a positive impact on them because their monthly payments are going to be lower.

“It is nice to see lenders are reducing rates at the higher LTV mortgages and there seems to be a lot more healthy competition at 90 per cent, which is good news for consumers.

“It has probably never been cheaper to borrow money at that level.”