Purposes of Loan - What Nationwide Will Lend For
As well as borrowing for the purchase of a home, your client may borrow extra money:
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Additional borrowing with a remortgage
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Borrowing on a mortgage free property
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Additional borrowing where your client already holds a Nationwide mortgage
Nationwide can lend for the following:
Home Improvement purposes
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Structural home improvements
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Non-structural home improvements
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Buy final share in shared ownership
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Buy additional share in shared ownership
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Buy a share in a freehold
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Buy out a partners interest (non borrower)
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Buy freehold or new extended lease
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Buy land to extend security (current property)
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Buy neighbouring property to convert to a single dwelling.
Non home improvement purposes
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Buy land and/or property separate from security - current property
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Buy a car, caravan or boat
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Buy furniture, electrical or white goods
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Repay unsecured debts
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Holiday
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Other personal consumption
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Invest, save or share purchase
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Business purposes - maximum £25,000
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Pay school fees or child care
Please note: The purpose of the borrowing must be detailed in full on the mortgage application form.
Loans for home improvement purposes where the LTV is 85% or below will normally be released on receipt of the signed 'Acceptance of Offer' (lower restrictions may apply for remortgages please refer to our LTV criteria ) .
Where available, loans above 85% LTV will be released in stages if the new debt exceeds 85% of the value of the property in its current condition. Where this happens, we will require invoices for the full cost of any non-structural work, or a re-inspection by our Valuer on completion of any structural work. Please contact your relationship manager or service centre for full details.
The repayment term of the additional borrowing cannot exceed that of the main loan.
Maximum age restrictions also apply.
Remortgages include capital raising on a mortgage free property.
We do not accept remortgage applications for:
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Partially built properties
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Partially completed barn conversions
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Building plots
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Let properties
Right to buy purchases - Additional borrowing for debt consolidation is not permitted.
For information about products please see our products, loan size and maximum LTV criteria
Please note: To submit the case on NFI Online the LTV must be within maximum lending limits based on the current value.
Borrowing with Guarantors
Guarantor must be a close family member and be able to afford the whole mortgage as well as their own existing commitments. The guarantor will be assessed separately from the applicant in terms of our affordability criteria. The guarantor's own income (less existing credit commitments) must be sufficient to support the total mortgage balance requested plus any outstanding mortgage balances they may already have.
The guarantor must receive independent legal advice from a different solicitor to the one chosen by the applicant(s) and the guarantor will be responsible for all costs incurred in this respect.
Questionnaires must be completed in addition to the application form to provide all the information needed to process your case. These are available only from the website.
Please send your application and questionnaires to your usual Service Centre.
All guarantor cases will be individually underwritten by a specialist team in Head Office. Additional proofs in the form of 6 months bank statements, evidence of deposit (if not from existing equity) and 2 years business accounts (for self employed guarantors) will be required in all cases.
Mortgage Repayment Vehicles
As part of our commitment to responsible lending, we need to know how your clients intend to repay any interest only borrowing. We will accept the following repayment vehicles:
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stocks and shares ISA including one previously known as a PEP
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endowment policy
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pension plan
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sale of second property
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sale of main residence
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UK FTSE listed securities
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unit and investment trusts
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capital from Trust funds
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Premium Bonds
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sale of foreign holiday home
Unfortunately, there will be some cases where Nationwide cannot accept your client's repayment method as it will not meet our responsible lending requirements.
Sale of property to repay capital is subject to restrictions. If the property is your client's main residence, there must be £150,000 equity and borrowing must not exceed 66% of the value of the property.
The sale of a main residence or sale of a second property cannot be used in conjunction with any other type of repayment vehicle.
If the repayment vehicle is a second property, equity in that property must be at least 120% of the new mortgage that it is intended to cover. The property must be owned solely by your client(s).
Paper applications - If you choose one of the above options and it is not shown on the application please detail the selected repayment vehicle in the notes section.
Second Property
Affordability figure needs to cover all mortgages that will be outstanding at the time of completion, please also see clients with additional properties.
Where the current property is mortgage free normal lending terms apply.
For information about products please see our products, loan size and maximum LTV criteria
Where the case cannot be submitted via NFI Online, questionnaires must be completed in addition to the application form to provide all the information needed to process your case. These are available only from the website.
Please send your application and questionnaire to your allocated Service Centre
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