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Press Room

NatWest Takes up The First Time Buyer Mantle
(13 June 2006)

Many UK homeowners are waiting until their mid-thirties or older to get on the property ladder, according to NatWest Mortgage Services. One third of first time buyers in the last two years waited until after their 35th birthday to buy their first home and what’s more a fifth waited until after they were 40.

When it comes to taking the plunge, 4 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.

NatWest is further consolidating its help to first time buyers with a range of mortgages designed to suit the varying needs of those taking their first steps onto the property ladder. The range 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, the new NatWest deal at just 5.29% (Base Rate + 0.79%) could save customers thousands in fees. The package comes with no Higher Lending Charge, no arrangement fee and a free valuation, ideal for those trying to get their first foot on the property ladder.

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.

The costs associated with purchasing a house can be daunting for many first time buyers, so NatWest has a three year fixed deal at 5.99% that comes with a 1% cash back which could help pay for Stamp Duty, furnishing the home or decorating. The deal also comes with a free valuation.

Guy Aldwinckle, Head of NatWest Mortgages, said: "Buying your first home is a big step and at NatWest we aim to give a helping hand to first time buyers at the time they need it most. One of the biggest decisions facing first time buyers is what type of mortgage to take and at NatWest we can offer advice and a choice of mortgages to suit their individual needs and help ease the burden with features such as free valuation and cash back."

For more information on NatWest’s mortgage range call 0800 400 999 or visit natwest.com/mortgages.

Notes to Editors:

  • All NatWest mortgages have an annual 10% overpayment option. This overpayment can take the form of lump sums or regular overpayments.
  • Figures taken from internal data from NatWest Mortgage Services.
  • NatWest also offer 100% LTV deals.


DealInterest RateAPRERCNotes
FTB
Two-Yr
Tracker
5.29% (BR + 0.79%) variable 'til 31.07.08 6.6%3% until 31.07.08 No arrangement fee, no higher lending charge, free valuation, with 90.01% - 95% LTV, 10% annual overpayment option.
FTB
Three-Yr
Tracker

3.99% variable until 31.07.07 (being 0.51% below the current NatWest Bank Base Rate of 4.50%) changing to

4.99% variable until 31.07.08 (being 0.49% above the current NatWest Bank Base Rate of 4.50%) changing to

5.99% variable until 31.07.09 (being 1.49% above the current NatWest Bank Base Rate of 4.50%) changing to our Standard Variable Mortgage Rate

6.7%2% until 31.07.0910% annual overpayment option, 195 arrangement fee, free valuation, with 90.01% - 100% LTV.