The increased limit will be available on all the mutual’s standard no-fee products.
Nationwide will also consider loans above £2m on a bespoke, individual basis, with all large loan cases individually assessed and underwritten.
Nationwide has had a £1m mortgage loan cap in place since August 2008 following the credit crunch, while prior to this it had no limit on its loan amounts.
It said that the market has now stabilised enough to allow it to return to more ‘standard’ lending arrangements, given that there is a demand for larger loans, particularly in London.
A spokesman for Nationwide said: “This is a further demonstration of our commitment to borrowers. We continue to lend prudently, but recognise that there are customers that need larger loans. We want to be in a position to offer our borrowers the types of loans that meet their needs.”
