Nationwide is extending its 85 per cent LTV lending through brokers and its online channel.
The LTV extension covers all new lending business. Previously the building society had withdrawn new customer lending above 75 per cent LTV so it could focus on its existing members and applications.
Due to the government’s lockdown measures to keep people safe during the coronavirus pandemic, physical valuations have temporarily been paused.
To allow business to continue, the society is carrying out as many valuations as possible using remote desktop and automated valuation models (AVMs).
Nationwide said this change reflected its confidence in undertaking valuations up to 85 per cent using these alternative methods.
New borrowers can still apply to borrow up to 95 per cent LTV by telephone and via Nationwide NOW, the society’s branch video service.
Henry Jordan, Nationwide’s director of mortgages, said: “We continue to focus on supporting existing mortgage members and customers and ensuring that ongoing applications can be processed as quickly as possible.
“However, as the UK’s second largest mortgage lender, it is right that we still play an active role in the market, while maintaining the levels of service expected of us, during what are unprecedented and evolving times.”
Nationwide will also be launching two remortgage products up to 60 per cent LTV with a £1,499 fee from tomorrow. These are a two-year fixed rate at 1.19 per cent and a five-year fixed rate at 1.39 per cent. The deals will be available on interest only and capital repayment. Fee-free options are also available.
The society has increased rates on its two, three and five-year fixed rates at 80 per cent and 85 per cent LTV by up to 0.25 per cent. Two-year tracker rates at the same LTVs will also be increased by up to 0.15 per cent.
Halifax has reintroduced selected two, three, and five-year fixed rate homemover, first-time buyer, new build and affordable housing deals up to 85 per cent LTV.
Previously the bank’s highest loan to value for new lending was 80 per cent.
Ian Wilson, head of Halifax Intermediaries, said:“Being there for our customers when they need us is our priority and we have continued to review and adapt our product range to focus on supporting the intermediary market through unprecedented times.
“We’ve been working hard behind the scenes to ensure our existing customers have access to product transfers, and re-introducing products up to 85 per cent LTV will help provide greater options for intermediaries to meet customers’ needs.”
The bank has also introduced several other new deals, and increased rates on some existing mortgages up to 0.16 per cent.
Two and five year fixed rates for remortaging have been reintroduced while its two year tracker up to 60 per cent LTV has been withdrawn.