NatWest support for Government NewBuy scheme

NatWest confirmed participation in the launch of the Government NewBuy Scheme.  The initiative aims to help 100,000 people buy a new-build home with a deposit between 5% and 10%.

High Loan-to-Value (LTV) lending in today's environment is higher risk and at much higher capital costs than it was historically, however the indemnity offered by the builder and the Government makes the risk acceptable to lenders.

Moray McDonald, Mortgages Director said: "We welcome the builders and Government sharing the risk to make this initiative possible.  We hope the increased demand it will create will help lift the economy via the construction of additional homes."

"We have maintained 90% Loan-to-Value (LTV) lending for second hand homes continuously since the financial crisis.  NewBuy allows us to now extend 90%-95% loans to new home buyers, backed by strong promotional rates."