Nationwide expands interest-only mortgages to purchase via brokers

Nationwide expands interest-only mortgages to purchase via brokers

 

The lender is offering interest-only up to 60 per cent loan to value (LTV) after re-entering the market with remortgages earlier this year.

Nationwide requires minimum equity of £300,000 in London, £250,000 in the South East and £200,000 across the rest of the UK to consider interest-only.

Rates on the society’s interest-only products are the same as its capital repayment mortgages and start from 1.24 per cent.

Repayment will be restricted to the sale of the main residence only, with part interest only and part capital repayment mortgage also allowed subject to the same criteria.

Applicants will need a minimum income of £75,000 for sole applications (or £100,000 if joint) and the product will come with a maximum term of 25 years (or retirement age if that is sooner).

Henry Jordan, Nationwide’s director of mortgages, said: “Interest-only lending remains an important part of the market, especially for those with a good level of equity in their home.

“Since we re-entered the market earlier this year, we have seen good demand from borrowers and are pleased we can now expand our interest only range to purchases as well as remortgages.

“As the UK’s second largest lender, it is natural that we continue to look at ways we can support the mortgage market, including the products we make available through brokers and we hope to expand our range further in the near future.”