NatWest has launched Shared Ownership mortgages, making it possible for customers to buy a percentage of their home and pay rent on the remaining share.
Customers can start with a minimum 25% share and have the option to buy more over time.
Shared Ownership mortgages are available for both new purchases and remortgages, including staircasing.
Customers can borrow up to 95% loan-to-value (LTV) on new builds and take advantage of the green fixed rate option.
After six successful mortgage payments, Shared Ownership customers can apply for additional borrowing, which will be limited to staircasing purposes at first.
NatWest has also updated its lending criteria for new build properties and interest-only mortgages.
Customers purchasing new build flats can now access up to 90% LTV, and up to 95% on houses.
The LTV limit on interest-only mortgages has increased to 75% when the sale of the property is the main repayment strategy and to 80% with other investments.
To qualify for interest-only, customers need to earn at least £75,000 on their own or £100,000 as a couple.
Lloyd Cochrane, head of mortgages at NatWest Group, said: “We want as many of our customers as possible to be able to buy their own home.
“Today’s launch of Shared Ownership mortgages means we are bringing more choice for customers who are thinking about the ways in which they can get on the housing ladder.
“We have also made improvements to our borrowing criteria meaning customers can buy a new build flat or house with a lower deposit.”
Cochrane added: “Together these changes mean we can help to bring the dream of home ownership within reach of more customers sooner.”
