The LTV is being increased from 80% to 90% from 31 May.
The mutual noted that it is five years since the launch of the equity loan scheme, meaning many borrowers are now considering their options as interest will now be charged on the equity share.
Nationwide’s core range will be available to applicants, while those remortgaging will have the option of free standard legals or £500 cashback.
Henry Jordan, director of mortgages at Nationwide, said the increase in the maximum LTV would mean the mutual could support more borrowers looking to clear outstanding equity loans.
He continued: “Those due to pay interest on the equity loan potentially also face the prospect of owing an increased amount in the future if their property increases in value. This change helps customers looking to take the path towards full home ownership, ensuring that by the end of the mortgage term they will own their home outright.”
