NatWest announces entry to the shared ownership mortgage market

NatWest has entered the shared ownership lending market, expanding the limited pool of options for homebuyers using the scheme to get on the property ladder. Shared ownership schemes continue to offer a vital choice for aspiring homeowners, allowing them to purchase a part-owned property. The entry will also enhance options for those with existing shared ownership mortgages looking to remortgage.

Behind the NatWest launch

NatWest launched its shared ownership mortgage on 11 November 2025; however, it is only available to borrowers using a mortgage broker and cannot be arranged directly.

The announcement follows NatWest’s launch of enhanced provisions under its family-backed mortgages earlier this year, which allows borrowers to increase their borrowing capacity by combining their income with that of a family member or friend. These initiatives have emerged against a backdrop of calls from regulators and the government urging lenders to expand lending for first-time buyers.

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. Together these changes mean we can help to bring the dream of home ownership within reach of more customers sooner .’

We explain more about buying your home through shared ownership schemes in our article, "What is Shared Ownership – how it works and should I do it?". You may also find it helpful to refer to our "Guide to buying your first home".

How NatWest Shared Ownership mortgages work

Shared ownership schemes offer homebuyers the opportunity to own a proportion of the property while paying rent on the remaining portion. It means that they need a smaller deposit initially to secure the property and the corresponding mortgage payment is made more affordable compared with buying the whole property from the outset. Rent is paid to the scheme to cover the proportion of the property that remains in the scheme’s ownership. The buyer then has the ability to ‘staircase’ towards full ownership by purchasing further shares of the property.

Homebuyers using the shared ownership scheme have to ensure that their chosen lender offers mortgages to support this type of purchase scheme. Additionally, limits apply to the minimum level of ownership required to qualify for the mortgage. Below, we list the key features of NatWest’s shared ownership mortgage.

NatWest shared ownership mortgage key features:

• Minimum 5% deposit is required
• Lending is limited to a maximum of 4.45 times income
• Purchase and remortgage options available
• Borrowers must purchase a minimum 25% share of the property, subject to the scheme's rules
• Applies to a range of products, including up to 95% LTV lending, new builds and green fixed-rate mortgages

Enhanced interest-only mortgage criteria

Alongside the introduction of shared ownership lending, NatWest also announced the easing of limits on interest-only mortgage lending. It has increased the maximum loan-to-value (LTV) for those looking to arrange an interest-only mortgage, where repayment is to be made through the sale of the property, from 50% LTV to 75% LTV. This ease may further enhance a borrower's ability to meet current affordability criteria for a home purchase, provided they meet the minimum income requirement of £75,000 as a single applicant or £100,000 as a joint applicant.

How to arrange a mortgage to support a shared ownership purchase

Shared ownership schemes have specific rules which can vary depending on the provider. Homebuyers will need to ensure that the scheme's rules fit around the parameters outlined by a lender for the mortgage. This is in addition to all of the usual qualifying criteria that will test your creditworthiness and how much you can afford to borrow. NatWest's shared ownership mortgages are only available when you apply through a mortgage broker. A mortgage broker can provide valuable guidance and offer support in simplifying what is often a complex and tricky endeavour. Additionally, a mortgage broker will be able to advise you when another lender may be better suited to your needs or offer a better interest rate.

If you do not have a mortgage broker, you can choose one using the online financial professionals' directory, Vouchedfor*. It offers listings of mortgage professionals based on your locality and the specialist advice needed as well as other customers' reviews of the service they provide. If you prefer not to use an online mortgage broking service that charges, you may find that Habito* meets your needs. It is an online mortgage brokerage where the advisers provide advice and guidance through an online portal and over the phone, and have access to over 90 lenders' mortgage deals.

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, Vouchedfor