A lifetime mortgage (or equity release mortgage) is a long-term loan secured against your home. It's normally repaid when you move into long-term care or upon death.
NatWest mortgages are available to over 18s. Your home or property may be repossessed if you do not keep up repayments on your mortgage. The content on this page is guidance only and does not constitute advice.
Home equity (sometimes referred to as mortgage equity or house equity) is the value of your home minus any remaining capital you owe on your mortgage. Put simply, equity is the amount of your home you own.
To calculate how much equity is in your home you can use our home equity calculator.
Here's an example;
Negative equity is a scenario where the remaining capital you owe on your mortgage is more than your property is worth. It is often caused by your property reducing in value, compared to the value of the property when you bought it.
An example could be:
Homebuyers with smaller mortgage deposits are more at risk of negative equity. For example, a 5% deposit mortgage means you only have 5% equity in your property when you complete the purchase. Therefore, a 5% fall in house prices would be enough to cause negative equity.
The Help to Buy: Equity Loan scheme is a government incentive designed to help those purchasing property in England with a first time buyer mortgage.
The scheme allows first time buyers to borrow an equity loan to cover from 5% and up to 20% of the property purchase price of a newly built home (up to 40% if the property is in London).
The equity loan percentage you borrow is used to calculate your interest and equity loan repayments.
For more detailed information, visit the Gov.uk website
If you apply for a NatWest mortgage as part of buying a home using the Help to Buy: Equity Loan scheme, property and buyer eligibility criteria will apply.
Releasing equity means taking some of the equity you have built up in a property and turning it back into money. Your percentage of equity reduces but you have access to liquid funds in return. There are two main types of equity release products available that can help you release equity tied up in a property. There are costs and interest usually associated with these types of products.
NatWest does not currently offer 'equity release mortgages', 'lifetime mortgages' or 'home reversion' products. This information is for guidance only.