Nationwide expands access to 90% LTV to further support the housing market

  • Lending at 90% LTV to include house purchases and existing mortgage members1 moving home
  • More capacity created as Society remains only major lender to offer 90% LTV mortgages
  • Society to also remove restriction on gifted deposits to further support first-time buyers
  • Mutual hopes these changes will help even more people move into first or next home

Nationwide Building Society will be increasing access on higher loan-to-value mortgage lending as it does even more to help people move home at what remains a difficult and uncertain time for many.

From the second week of December, the Society will be expanding its lending by making 90% Loan-to-Value (LTV) loans available for house purchase and for existing mortgage members1 looking to move home, giving them the same access to 90% LTV home loans as first-time buyers.

Nationwide hopes that, by building on its position as a mutual doing what it can to help keep the housing market moving, it is able to support even more people looking to move – whether first-time buyers or those moving home.

They will be able to borrow up to £500,000 over a maximum 25-year term, with rates aligned with those on offer to first-time buyers at 90% LTV, including 3.49% for a two-year fixed mortgage with a product fee of £999. As has been the case throughout the pandemic, existing mortgage members1 are able to borrow up to 95% on a like-for-like LTV basis, with no LTV restrictions on those looking to switch deals and rates priced the same or better than new business equivalents.

As the only major lender to still offer 90% LTV mortgages without any restriction on volume, Nationwide re-entered the market in July with temporary, but necessary, criteria in place to protect service and lend responsibly.

After four months of offering 90% LTV in the current environment, the Society is now in a position to expand access to house purchase and existing mortgage members moving home and remove the temporary criteria applied to fully gifted deposits.

Nationwide will once again allow fully gifted deposits at 90% LTV from the second week of December2, aligning to standard policy and expanding the level of support parents can provide to their family.

In the six months to 30 September 2020, Nationwide helped 21,000 first-time homeowners buy their own home - equivalent to one in six of all first-time buyers. All of the Society’s 90% LTV mortgages are available directly with Nationwide (telephone and online) as well as via brokers.

Henry Jordan, Director of Mortgages at Nationwide Building Society, said: “Nationwide was founded to help people into homes of their own and that remains the case as much today as it did 135 years ago. As a mutual, owned by our members, we aim to balance supporting first-time buyers into a home of their own with the need to lend responsibly. Given the uncertainty created by the pandemic, our re-entry into 90% LTV lending back in July was deliberately cautious and included enhanced criteria.

“Four months on, we are increasingly confident in our approach and so are delighted to be able to expand our support for the market to include home movers whilst removing some of the temporary criteria for first-time buyers, making it easier for parents to help them take their first step onto the housing ladder.”

1 Previously, existing mortgage members moving home were able to borrow between 85% and 95% LTV on a like-for-like basis. From the second week of December, a like-for-like LTV basis will only be necessary for lending between 90% and 95%.

2 For new applications.