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Nationwide ups LTI to 6.5 on like-for-like remortgages

  • 12/05/2022
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Nationwide ups LTI to 6.5 on like-for-like remortgages
Nationwide Building Society has increased its maximum loan to income (LTI) limit to 6.5 times income for customers remortgaging on a like-for-like basis.


This has risen from 4.49 times income and is available up to 90 per cent loan to value (LTV). 

The product is aimed at borrowers who want a better rate or those on a variable rate who are after a fixed option. 

The mutual said it might also help mortgage prisoners who are unable to remortgage due to current affordability criteria. 

Applicants will still be subject to Nationwide’s affordability assessment. The mutual reduced the stress rate on like-for-like remortgages in 2020 to put it one per cent above its standard mortgage rate (SMR) instead of three per cent higher. The SMR is currently 3.99 per cent. 

Henry Jordan (pictured), director of mortgages at Nationwide Building Society, said the ability to get a better rate on a mortgage was increasingly important given the current squeeze on household finances. 

He added: “The ability to borrow enough can be a barrier when people look to remortgage, even when they can demonstrate a clean payment history.  

“The remortgage market continues to remain strong as people look to try and counter the rising cost of living by securing a better rate on their mortgage or fixing their mortgage payments. By increasing the maximum LTI, we are giving people who don’t need any additional borrowing more opportunity to change lender and save money, and potentially helping mortgage prisoners who have been unable to remortgage to a better deal until now.” 

David Hollingworth, associate director at London and Country Mortgages, said: “This move should help give borrowers confidence that they can shop around, despite facing the current financially uncertain backdrop.  

“Those borrowing on a like-for-like basis will have a clear track record of meeting their payments and will feel that they should be able to take advantage of better deals by switching lender. It’s therefore good to see lenders thinking about how they can provide more flexible solutions for the right target groups.” 

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