Loan purpose

In this section we cover:

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

Borrowing reasons

We will only allow additional borrowing for specific purposes. For additional borrowing with a remortgage or borrowing on a mortgage free property, these are detailed below, along with the maximum LTV for each purpose.

The borrowing reason or reasons must be detailed in full on the mortgage application form. If your client is borrowing for more than one reason, the lowest LTV limit applies.

Borrowing reasons Maximum LTV Additional information and restrictions
Buy additional share in shared ownership 90% Key as a shared ownership application on the loan requirements screen of NFI Online.
Buy a share in the freehold 90% This is not allowed on shared ownership.
Buy final share in shared ownership 90% Key as a shared ownership application on the loan requirements screen of NFI Online.
Buy freehold title or new extended lease 90% Key the new lease term on the application. Contact us for shared ownership applications.
Buy land or property separate from
the security		 90%

You cannot borrow to buy land or property to be let out.

This is not allowed on shared ownership, or on right to buy within the discount clawback period.
Buy land to extend security 90% This is not allowed on shared ownership.
Buy out partner's interest
(non borrower)		 90% n/a
Like for like remortgage 95% This applies to standard ownership types only.
Non-structural home improvements 90% This includes boiler replacement, new kitchen or bathroom, replacing double glazing or central heating installation.
Other personal consumption 90%

This includes holiday, car or school fees.

We do not lend for business purposes.

This is not allowed on shared ownership, or on right to buy within the discount clawback period.
Pay off second charge 80%

Any equity loan other than Help to Buy is classed as a second charge.

This is not allowed on shared ownership, or on right to buy within the discount clawback period.
Remortgage with additional mortgaged properties in the background 85% This includes second home or buy to let property. See below for more second property information.
Repay Help to Buy Equity Loan 90%

A Help to Buy Equity Loan, including Scottish First Home Fund, must be repaid in full. No other additional borrowing can be requested as part of the remortgage application.

If the LTV is 80% or below, key as 'Pay off second charge' on NFI Online.
Repay unsecured debts (debt consolidation) 80%

This includes credit cards, personal loans or hire purchase.

This is not allowed on shared ownership, or on right to buy within the discount clawback period.
Structural home improvements 90% This includes internal wall removal, extending a property, major roof works or a new staircase.

Restrictions and lower LTV limits may apply for some foreign nationals without Indefinite Leave to Remain in the UK, or if borrowing a large amount.

See our LTV criteria information.

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Unacceptable borrowing reasons



  • Building plots/self-builds where this will form Nationwide's security

  • Business purposes, such as injecting funds into a business, repayment of business debt, or paying an HMRC tax bill

  • Let properties

  • Loft conversions where the property is to be occupied throughout the work

  • Partially built properties

  • Partially completed barn conversions

  • Purchasing a Buy to Let

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