A shift in borrower profiles reveals where the bank sees its next area of growth
NatWest has set a target to lend £10bn to first-time buyers in 2026, building on its support for more than 50,000 new homeowners who entered the market in 2025, according to the bank’s annual results published Thursday.
The lender attributed its increased capacity to support first-time buyers to adjustments in mortgage regulations. New homeowners accounted for 30% of gross mortgage lending in 2025, with the bank’s Family-Backed mortgage product contributing approximately £300m to this figure.
Launched in April 2025, the Family-Backed mortgage operates as a joint borrower sole proprietor product, enabling first-time buyers to include a family member’s or friend’s income in calculations.
More options for buyers
The UK mortgage market has also become more favourable to first-time buyers, offering the widest range of low‑deposit deals – including 90% and 95% loan-to-value products – seen since 2008. This provides first-time buyers with more opportunities than they have had in nearly two decades.
The bank’s total mortgage book reached £215bn by the end of 2025, up from £210bn the previous year. NatWest supported 200,000 new borrowers for home purchases or remortgages last year, representing an 18% increase from 2024. The lender now holds a 12.5% share of the UK mortgage market.
Owner-occupied mortgages comprised £193bn of the portfolio, while buy-to-let lending totalled £22bn. The average loan-to-value ratio for owner-occupied mortgages stood at 57%, similar to the previous year’s 56%.
The bank’s arrears performance improved, with 0.4% of its book in up to three months of arrears, down from 0.63% in 2024 and below the industry average of 0.83%.
NatWest also detailed environmental targets for its mortgage portfolio. As of 31 Dec. 2025, 48.8% of properties had an Energy Performance Certificate rating of C or better, up from 46.3% in 2024. The bank aims to achieve an EPC rating of C or higher across 50% of its UK residential mortgage portfolio by 2030, where certificates are available.
The bank reported strong financial performance, with income growing 14% to £13.6bn, supported by fees, volumes and margin. Net interest income rose 8% to £9.7bn, while operating profit jumped 23% to £4.2bn.
“NatWest Group delivered another strong year in 2025, rooted in our support for people, families and businesses in every nation and region of the UK,” said Paul Thwaite, CEO of NatWest.
“We start 2026 from a position of strength. That strength gives us the confidence to raise our ambition and accelerate our progress – so we can go further to win together with our customers, colleagues, shareholders, and the communities we are proud to serve across the UK.”
The bank noted that 2025 marked its return to full private ownership.
