Nationwide introduces 90 per cent LTV deals for first-time buyers

Nationwide introduces 90 per cent LTV deals for first-time buyers

 

The product range for first-time buyers has no set limit on the number of loans available to borrowers and is available through brokers and direct from the mutual.

Nationwide has not published details of the products which will go live on 20 July, but said: “As a responsible lender, enhanced criteria will apply.”

The property must be a house at least two-years old, the maximum mortgage term is 25 years and applicants will be subject to enhanced affordability and credit score criteria.

New build is excluded but the lender said it will continue to lend through the Help to Buy scheme.

Nationwide added that the stamp duty cut, combined with a more active housing market following the lifting of lockdown restrictions, “has provided an opportunity for the society to return to higher LTV lending.

“Nationwide hopes the move will provide some more reassurance and opportunity for its members and the market following a period of such uncertainty.”

Nationwide withdrew its lending to 85 per cent LTV in the middle of June, having previously been offering up to 95 per cent LTV to direct customers.

 

Right time to move

Henry Jordan, director of mortgages at Nationwide Building Society, noted first-time buyers were a vital part of the housing market and economy with raising a deposit being a significant barrier.

“While we will continue to monitor the market carefully, we feel it is the right time to enhance our lending, initially to those looking for their first home,” he said.

“We welcome the government’s announcement on stamp duty and hope our combined changes create a positive impact on a market that, despite being in relatively good health, is still recovering.”

Miles Shipside, commercial director at Rightmove, added: “The ability for lenders to offer lower deposit mortgages to first-time buyers is critical to helping the market recover more quickly.

“The stamp duty holiday is of limited benefit to those first-time buyers who are already exempt from it in many parts of the country, and so Nationwide’s return to 90 per cent LTV is likely to help significantly more for those trying to get their first step on the ladder.

“There’s been record demand for property on Rightmove since the market reopened which has been boosted even further by the stamp duty announcement, all of which should help activity levels over the coming months.”