How is NatWest able to launch a new 90% LTV mortgage?
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What are the restrictions?
mark123
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
at 6.89% for 5 years its not much to party about.
also remember as natwest is almost entirely state owned they have deep pockets but these type of rates are best avoided usually.
even by scraping a little more deposit and getting an 85% ltv loan will dramatically cut the above rate and would be far more attractive
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also remember as natwest is almost entirely state owned they have deep pockets but these type of rates are best avoided usually.
even by scraping a little more deposit and getting an 85% ltv loan will dramatically cut the above rate and would be far more attractive
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
In a more general sense, the decisions made by lenders balance their assessment of the risk involved, and the availability and cost of the funds involved. The organisation has decided that the risk falls within what they are prepared to accept and so they have taken a business decision to enter that particular, rather empty, arena.
Very useful, I think, for the first time buyer with a modest deposit, and we need more 90% mortgages out there, with more competitive rates. But Darren, as usual, speaks wisely: try to get a bigger deposit, if you can.
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Very useful, I think, for the first time buyer with a modest deposit, and we need more 90% mortgages out there, with more competitive rates. But Darren, as usual, speaks wisely: try to get a bigger deposit, if you can.
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
This isn't unusual. Looking at my research system, there are several 95% Loan to value deals on offer for exising mortgage holders only and several 90% loan to value for first time buyers. As Darren has mentioned, their rate is quite high and the best 90% LTV on the market is at 4.59%.
Slowly, slowly the LTV will improve, but it will take some years
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Slowly, slowly the LTV will improve, but it will take some years
