2013 has been the year of rate cuts and high LTV (Loan to Value) mortgage products. With Help to Buy being expanded and lenders outside the scheme also launching similar loan products, we’re seeing loads of major financial players competing hard at this end of the market.

Today, Natwest joins in the competition by cutting rates on its own higher LTV products (such as their 80% and 85% loans), while increasing their buy-to-let rates. This is interesting to say the least. A selection of their fixed-rate loans are being dropped by .2% (which seems small, but adds up over the life of a mortgage!)

Natwest’s head of sales Mark Bullard said:

“It is nice to be able to end the year with news of some rate reductions. A couple of weeks ago we made cuts on our lower LTV residential products and now it’s the turn of some of our higher LTV and longer-term deals.

This side of the market has been particularly low in options for the past several years, and we’re seeing proper competition for customers who don’t have huge deposits (such as first-time buyers). This competion – as we say all the time – is good because it lets people properly shop around and compare. Different lenders will have different criteria for their loans, different interest rates, and different fees.

All these choices might seem daunting, but shop around. Compare interest rates and fees, and look at the length of the fixed terms.

If you need help, drop us a line. We’re independent, and can help you find the right combination of options to get your mortgage sorted.

Posted in First Time Buyers, Mortgages, Next Time Buyers