Weekly Real Estate News
Summary
NatWest Group reported October 30 that its 2026 first-time buyer lending had surpassed £10 billion, exceeding its full-year target. Retail Banking mortgage balances increased £1.2 billion in the third quarter, and 36,000 customers linked £6.2 billion of mortgages held elsewhere to its platform. These measures are distinct; the first-time buyer figure is lending activity, while £1.2 billion is a change in balances.
NatWest has surpassed £10 billion in lending to first-time homebuyers this year, exceeding its 2026 target even as the wider UK housing market struggles with higher borrowing costs and slowing price growth.
The bank disclosed the milestone in its third-quarter results published October 30. It also reported that retail mortgage balances rose £1.2 billion during the July-to-September quarter, while retail customer deposits increased £3.1 billion.
The two mortgage figures measure different things. The £10 billion total describes lending to first-time buyers during 2026; the £1.2 billion increase reflects the net change in NatWest’s retail mortgage balances over one quarter, after repayments and other movements. Neither is a count of home purchases, and the company did not say that all of its mortgage balance growth came from first-time buyers.
Mortgage activity holds up as house-price growth slows
NatWest’s disclosure arrived the same day that Nationwide reported annual UK home-price growth of just 0.5% in October, the weakest pace since January 2024. Nationwide’s seasonally adjusted index was flat for the month. That survey measures prices among the lender’s mortgage approvals; NatWest’s figures describe its own lending business. The results can coexist without implying a recovery across the entire UK market.
NatWest also said 36,000 customers had connected £6.2 billion of mortgage balances held with other lenders through its Mortgage Elsewhere Hub. Those connected balances are not loans originated or acquired by NatWest. They reflect customer use of a service that lets the bank view outside mortgages.
In a market where lenders compete for borrowers approaching refinancing dates, that connection may help NatWest identify opportunities to offer replacement financing. The company did not disclose how many connected customers had switched their mortgages or how much new lending the feature generated.
Higher rates remain part of the bank’s outlook
NatWest reported £1.5 billion in profit attributable to ordinary shareholders for the quarter, while operating profit before tax was £2.225 billion, up 1.9% from a year earlier. Its net interest margin stood at 2.50%, compared with 2.37% a year earlier, and total quarterly income reached £4.64 billion.
Credit costs rose: the group’s net impairment charge was £277 million, compared with £140 million in the second quarter. The bank said its overall loan portfolio remained resilient, but those charges underline the pressure that higher borrowing costs can put on some households and businesses.
Management’s results materials assume the Bank of England’s policy rate will rise by a quarter percentage point to 4% in the fourth quarter of 2026. That is the bank’s planning assumption, not an announced central-bank decision. A further rate increase could complicate affordability for new buyers and homeowners refinancing fixed-rate loans.
The bank also reported more than £2.8 billion committed to social housing through its commercial and institutional activities. The company described the amount as committed financing, which should not be confused with completed housing construction.
For UK mortgage brokers, the figures show that a major lender can grow its first-time buyer business during a weak housing market. They do not establish whether other lenders are seeing similar demand. The next test will be how applications, pricing and arrears behave if borrowing costs rise again.
