Natwest has launched a range of two and five-year fixed rate cashback mortgage deals for first-time buyers.
The new deals all feature a £500 cash-back payment that the customer will receive on completion of their mortgage, with only one of the applicants having to be a first-time buyer.
Head of mortgages and protection at the bank Lloyd Cochrane said cashback can make a huge difference to customers to help with the additional costs associated with buying a home, such as legal fees and the cost of moving.
Natwest Intermediary Solutions’ head of sales Mark Bullard, said cashback has been a growing feature on first-time buyer mortgages since the end of 2014, with 40 per cent of first-time buyers opting for a cashback mortgage in 2016.
“As part of our commitment to support first-time buyers, we believe that the addition of cashback, alongside our Help to Buy, shared equity and other first-time buyer mortgages offers brokers a really comprehensive choice for their customers,” he added.
| New products: | | |
Two-year fixed rate | | |
| 80% LTV 2.72% | APRC 3.9%, SVR 4.0% | £0 product fee |
| 85% LTV 2.87% | APRC 3.9%, SVR 4.0% | £0 product fee |
| 90% LTV 2.97% | APRC 3.9%, SVR 4.0% | £0 product fee |
Five-year fixed rate | | |
| 80% LTV 3.54% | APRC 3.9%, SVR 4.0% | £0 product fee |
| 85% LTV 3.57% | APRC 3.9%, SVR 4.0% | £0 product fee |
| 90% LTV 3.88% | APRC 4.0%, SVR 4.0% | £0 product fee |
Overpayments of up to 10 per cent of the outstanding balance per annum are allowed during the initial deal period.
In terms of early repayment charges, on the two-year fixed rate they are set at 2 per cent until 30 November 2017 and 1 per cent until 30 November 2018.
On the five-year fixed rate it’s 5 per cent until 30 November 2017, 4 per cent until 30 November 2018, 3 per cent until 30 November 2019, 2 per cent until 30 November 2020 and 1 per cent until 30 November 2021
The minimum loan amount is £25,000.
peter.walker@ft.com
