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NatWest launches x2 95% LTV products and withdraws from Mortgage Guarantee Scheme

ended 21. December 2022

NatWest today announced that, from Thursday 22nd December, it will launch 2 new 95% LTV products and subsequently withdraw from the Mortgage Guarantee Scheme. The new 95% LTV products are for purchases only; however they are available not just to first time buyers, but home movers, and also those who may have background properties. Free PR platform, Newspage, asked brokers for their views.

3 responses from the Newspage community

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Craig FishVerified
Director at Lodestone Mortgages
If ever there was an indication that the mortgage market is open for business, this is it. Not only are NatWest sticking their head above the parapet, but they are also doing it in style by withdrawing from the government scheme that provides them with a guarantee. This is a clear indication to all that they have money to lend and that they don't believe there will be too much of a slide in property prices. I do fear for their already stretched service levels, though. However, this is a positive signal that first-time buyers will welcome.
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Scott Taylor-Barr0
Principal Adviser at Barnsdale Financial Management
From the conversations I have had with lenders over the years, the Government's mortgage guarantee scheme was expensive to be part of, with many lenders choosing from the outset to lend at 95% LTV without using the scheme. It would be interesting to know if the costs of being part of the scheme have increased, given the projections for property prices in 2023, or if some other conditions have been imposed that NatWest didn't want to agree to.
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Matthew JacksonVerified
Director at Mint FS
Have been wracking my brains on this one. NatWest could offer 95% lending through the government mortgage indemnity scheme where all borrowing above 80% loan to value is indemnified by the government. But I am guessing they would then be required to price similarly to other lenders who offer this scheme. By withdrawing, they can still in name offer 95% mortgages, which is of course good for PR as they're a lender who supports first time buyers and home movers with small deposits. The reality is that no self-respecting broker would ever recommend these products over the alternatives, especially considering their service issues. Like a lot of things Natwest have done recently (continuing to offer products with a 6-week wait for a case to be looked at), this does not really make any sense.