NatWest Intermediary Solutions has increased the maximum limit of builder’s incentives allowable on New Build properties from 2% of a property’s purchase price to 5%.
Portable and proportionate incentives, such as carpets and curtains, along with other financial incentives such as support with upfront costs or enhanced part exchange terms can be accepted in the 5% allowance.
Non-standard items such as an upgraded kitchen or integrated appliances can be accepted as an incentive but do not need to be included in the 5% allowance. It will be the responsibility of the valuer to decide which incentives are included in the calculation.
Customers who have already submitted an application and who haven’t yet completed will be able to include up to 5% of builder’s incentives.
Sarah Taylor, service development manager at NatWest Intermediary Solutions, said: “Earlier this year, we began accepting builder’s incentives of up to 2% of the value of a New Build property. Having now gained some experience implementing this process we are delighted to be able to increase this limit to 5%.
“New Build is anticipated by many to be an area of growth in 2016 and we have an appetite to grow our presence in this sector of the mortgage market.”