Mortgage News
Nationwide relaxes income policy and amends lending requirements
Nationwide will now require brokers to provide their clients’ latest three months’ bank statements with mortgage applications to show any maintenance payments, instead of the six months previously requested.
Clients will still be required to provide a court order, CSA [Child Support Agency] assessment letter or written private agreement, Nationwide said in a broker statement.
The building society has also made changes to its lending policy, and will no longer accept all or part of a customer’s deposit gifted from a non-UK company.
Builder cash backs are acceptable on Shared Ownership applications, subject to the current builder cashback rules, but the lender will not accept the cashback payments on equity share applications.
All the changes take effect immediately and apply to all pipeline cases.
In October, Nationwide reduced its stress rate for all residential affordability calculations following the Bank of England’s cut to the base rate. Its lower stress rate of 6.74% applies to all residential applications, including equity share.
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