THE first-time buyer market is “officially on fire” one broker has declared, as NatWest and Barclays become the latest high street lenders to target borrowers at high loan-to-values (LTVs). Another said first-time buyers are “the golden ticket of the mortgage world right now”.
Following on from Santander on Friday, with cuts of up to 0.32% at 85%, 90% and 95% LTV, and Nationwide on Thursday with cuts of up to 0.16% up to 95% LTV, Barclays has reduced its 2-year residential purchase mortgage (£0 product fee) at 95% LTV from 4.92% to 4.60%.
Meanwhile, NatWest has reduced its zero product fee 2-year fixed rate purchase mortgage at 95% LTV by 0.12% from 4.81% to 4.69%. The lender’s 2-year fixed rate remortgage at 90% LTV, with a £995 product fee, will reduce by 0.8% from 4.60% to 4.52%.
Lenders moving early
Rohit Kohli, Director at Romsey-based The Mortgage Stop, explained why rates are coming down.
He said: “Two and five-year swap rates have been sliding, with the two-year swap close to its lowest point in the past couple of years. Markets are increasingly pricing in a base rate cut, helped by softer employment data and frankly pathetic growth figures.
“First-time buyers are far more active than they were 12 to 18 months ago. Demand is there and it’s strong. By trimming rates at 90% and 95% LTV, NatWest is backing borrowers with smaller deposits, not just those sitting on equity.”
Andrew Montlake, CEO at London-based Coreco, a broker, said “lenders have first-time buyers firmly in their sights”.
He continued: “The cuts we’ve seen in recent days are highly encouraging and reflect falling swap rates and expectations of inflation falling and the base rate being cut. Affordability is being improved almost by the day right now and it’s shaping up to be a busier than usual spring property market.”
First-time buyer market “on fire”
Omer Mehmet, Managing Director at Welling-based Trinity Finance, was also upbeat about recent rate cuts.
He said: “The first-time buyer mortgage market is officially on fire. Lenders are actively targeting this demographic and the result is a huge win for those seeking to get onto the ladder. Rates coming down further supports affordability and can make a huge difference for aspiring borrowers.”
Meanwhile, Louis Mason, Content and Communications Director at London-based Oportfolio Mortgages, commented: “First-time buyers are basically the golden ticket of the mortgage world right now. NatWest saw Santander and Nationwide making moves last week and thought ‘not on my watch.’
“That 95% LTV rate dropping to 4.69% is a proper statement: they’re going after market share and first-time buyers are where the action is. 18 months ago, a sub-4.7% on a 95% LTV mortgage would have sounded like fantasy.”
Lenders fighting hard
Jamie Alexander, Mortgage Director at Romsey-based Alexander Southwell Mortgages, added: “Lenders are clearly fighting for first-time buyer business right now, and they’re fighting hard.
“With swap rates easing and confidence building around future base rate cuts, high LTV lending is becoming more competitive. First-time buyers drive the entire housing chain, so this is a strategic push to stimulate transaction levels as we progress through 2026.”
Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial said the rate cuts could come even faster if inflation plays ball on Wednesday: “Major lenders seem to be targeting higher loan-to-values, with Santander, Nationwide and now NatWest making their rates more competitive at 95% LTV.
“This is fantastic news for first-time buyers and, if inflation comes down on Wednesday as expected, rates could continue on their downward trajectory.”
David Stirling, Independent Financial Adviser at Mint Wealth, a Belfast-based adviser, said: “This is great news for those struggling to save a deposit and a signal from some of the larger lenders that they want the high LTV business to kickstart the property market properly in 2026.”
