LONDON, November 13, 2013 /PRNewswire/ --

Have you always wanted to own your home but felt that you couldn't afford the cost of the deposit?

There are thousands of people all over the UK who can afford to repay a mortgage, yet have been unable buy a home because of the challenge of saving for a large deposit.  But thanks to the Government's Help to Buy: mortgage guarantee scheme, that could be about to change.

Officially launched on 8 October by the Prime Minister, NatWest are proud to be the first UK bank to offer Help to Buy mortgages - products available to first time, or next time buyers who can afford to repay a mortgage, but who are struggling to save for a large deposit.

Some people may be confused at the idea of this scheme being 'brand new' as the term 'Help to Buy' is already being used. So, to clear this up, there are now two schemes; the first phase of Help to Buy was launched in April for England and Wales, designed to help people with a 5% deposit to buy a new property. Under phase one, a buyer would put down a 5% deposit and the government would then give an interest free loan for 20% repayable over five years. The buyer would then continue to pay the rest as a mortgage like everyone else. Phase one of Help to Buy is still available and referred to by NatWest as the NewBuy Scheme.

The new, or second phase, of Help to Buy means that the government is helping people across the whole of the UK to buy any property, either new or existing. This time they help by guaranteeing mortgage deposits of up to 15 per cent, meaning that new buyers will only have to pay 5 per cent deposits on homes up to the value of £600,000.

The scheme was initially going to be launched in January 2014 but has been brought forward by three months and we are able to start lending straight away.

This means you can call into your nearest branch today or give our mortgage team a call on 0800 096 9527 to arrange a meeting with an adviser and take those first exciting steps towards home ownership.

Our rates are also some of the most competitive on the market:

2 year fixed rate - 5% deposit with no product fee

  • 4.99% fixed until 31/12/2015
  • 4.0% variable thereafter
  • 4.3% APR is the overall cost for comparison
  • Early repayment charges apply until 31/12/2015

5 year fixed rate - 5% deposit with no product fee

  • 5.49% fixed until 31/12/2018
  • 4.0% variable thereafter
  • 4.8% APR is the overall cost for comparison
  • Early repayment charges apply until 31/12/2018

And, if you are looking to buy a home in the London area, make sure to check out the London Borough Tool, which compares everything from house prices and council tax to crime rates and travel costs across all the capital's boroughs.

Copyright 2013 PR Newswire

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