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Nationwide increases maximum loan size and LTI limit

by: Erin Smailes
  • 02/08/2022
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Nationwide increases maximum loan size and LTI limit
Nationwide is extending the maximum loan size for those looking to borrow up to 90 per cent loan to value (LTV) on a fee or no-fee five-year fixed rate mortgage.

The changes will be effective from 3 August, with loan sizes more than doubling in some instances.

The maximum loan size up to 75 per cent LTV has increased from £2m to £5m, and at 80 per cent LTV it has risen from £1m to £1.5m.

At 85 per cent LTV, the maximum loan size has gone from £750,000 to £1.5m and at 90 per cent LTV the maximum loan size has increased from £500,000 to £750,000.

The maximum loan for those borrowing 95 per cent LTV will remain at £500,000.

The mutual is also increasing its maximum loan to income limit for high earners on house purchase applications from 4.49x to 5.5x their income.

The lender said that the increase showed its support for homeowners as those with a total eligible income of over £100,000 are able to borrow up to the increased amount of 5.5x their income.

First-time buyers also continue to have access to Nationwide’s Helping Hand scheme that allows them to borrow up to 5.5x their income when taking one of the mutual’s five or 10-year fixed rate mortgages.

Henry Jordan, director of mortgages at Nationwide Building Society, said that: “With house prices continuing to rise, the need for a larger loan is becoming even more prevalent. As one of the UK’s largest lenders and the biggest building society, it’s important that we do all we can to support people purchasing their first or next property.

“The increases we’ve made to maximum loans we will provide at various LTVs brings us in line with other lenders and increases options for borrowers.”

 

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