UK retail bank NatWest has introduced a new mortgage range specially designed for first time buyers struggling to get on the property ladder. The new product comes in the wake of NatWest-commissioned research that reveals would-be home owners are having to leave it later and later in life before taking the plunge.
According to NatWest Mortgage Services, many UK homeowners are waiting until their mid-thirties or older to get on the property ladder. One third of first time buyers in the last two years waited until after their 35th birthday to buy their first home, and a fifth waited until after they were 40.
When it comes to taking the plunge, four in 10 first timers borrow at least 90% of the value of the property they are buying, while surprisingly 15% stump up at least half of the value themselves and take a mortgage for the rest.
To tackle this problem NatWest has launched a range to cater to the first time buyer, which includes a money saving two-year deal with no higher lending charge, a stepped tracker with a low rate in year one and a fixed deal that comes with cashback.
For first time buyers looking to borrow over 90% LTV, NatWest offers a 5.29% (base rate + 0.79%) mortgage. The package comes with no higher lending charge, no arrangement fee and a free valuation.
The First Time Buyer three-year tracker is a stepped product, keeping repayments low across the three years. It is particularly low in year one, which helps at a time when many first time buyers find it especially hard. The tracker is 3.99% variable in year one, 4.99% in year two and 5.99% in year three. The deal comes with free valuation.
Finally, NatWest has a three year fixed deal at 5.99% that comes with 1% cash back. The deal also comes with a free valuation.