Purposes of Loan - What Nationwide Will Lend For

As well as borrowing for the purchase of a home, your client may borrow extra money:

• Additional borrowing with a remortgage
• Borrowing on a mortgage free property
• Additional borrowing where your client already holds a Nationwide mortgage

Nationwide can lend for the following:

Home improvement purposes

• Structural home improvements
• Non-structural home improvements
• Buy final share in shared ownership
• Buy additional share in shared ownership
• Buy a share in a freehold
• Buy freehold or new extended lease
• Buy land to extend security (current property)

Non home improvement purposes
Loans can be used for non home improvement purposes, or a combination of home improvements and non-home improvements, up to 80% LTV only.

• Buy land and/or property separate from security - current property*
• Buy a car, caravan or boat
• Buy furniture, electrical or white goods
• Repay unsecured debts
• Holiday
• Other personal consumption
• Invest, save or share purchase
• Pay school fees or child care
• Pay off second charge
• Buy out partner's interest (non-borrower)
• Buy out joint borrower (transfer of equity)

*If the land and/or property is to be a 'buy to let', it must be the applicant's only investment property.

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
Remortgages include capital raising on a mortgage free property.

We do not accept remortgage applications for:

• Partially built properties
• Partially completed barn conversions
• Building plots
• 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 or MTE the LTV must be within maximum lending limits based on the current value.

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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:

• stocks and shares ISA including one previously known as a PEP
• endowment policy
• pension plan
• sale of second property
• sale of main residence
• UK FTSE listed securities
• unit and investment trusts
• capital from Trust funds
• Premium Bonds
• 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.

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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 or MTE, 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.

Buying a second property

Please send your application and questionnaire to your allocated Service Centre