First quarter lending increase revealed by NatWest

May 12, 2025 by Brendan O'Neill

Lenders

News

NatWest has revealed that it saw a significant increase in lending during the first quarter of this year, with the stamp duty deadline being credited as the main reason for it.

The net lending total overseen by the bank rose by 1% for that quarter, and mortgage loans account for much of this activity. Its mortgage book for the same period saw growth of £2 billion.

The first quarter of the year culminated in the lowering of the threshold for paying stamp duty, which happened on the 1st April. NatWest has indicated that the rise in mortgage lending was fuelled by first-time buyers looking to get deals completed ahead of that deadline.

It is not just lending that rose for this quarter either, as the bank also experienced notable profit growth. Its pre-tax profits for the period were £1.8 billion, whereas for the same quarter last year they were £1.3 billion. The eventual figure was better than the £1.6 billion that had been predicted.

Talking to Mortgage Strategy after the figures were released, Paul Thwaite from NatWest stated that:

“Our strong first quarter performance demonstrates the positive momentum in our business as we deliver against clear strategic priorities, and we now expect to be at the upper end of our income and returns guidance for 2025.”

NatWest will be going back into private ownership this year. That has not been the case since the financial crisis of 2008.

Mortgage advisors with CeMAP training will be pleased to see lending totals rise, but likely concerned about the stamp duty changes.