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Nationwide returns to 95 per cent lending on flats

  • 09/06/2023
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Nationwide returns to 95 per cent lending on flats
Nationwide will resume lending against flats at 95 per cent loan to value (LTV) after restricting this kind of property at the height of the pandemic.

The mutual made the decision not to lend against flats at this tier due to market uncertainty, and limited the maximum LTV to 85 per cent. 

The mutual has been lending on flats at 95 per cent LTV through the Deposit Unlock scheme, but this is the first time since the pandemic that the mutual will lend independently. 

Nationwide said the change would help first-time buyers as a quarter purchased a flat in 2022, compared to less than 10 per cent of homemovers. It said it would be even more beneficial to first-time buyers in urban areas such as London, where more than 35 per cent bought flats. 

Henry Jordan, director of home at Nationwide Building Society, said: “We are pleased to be able to return to higher loan-to-value lending on flats – a move that predominantly supports the first-time buyer market.  

“With flats representing one in four purchases for first-time buyers, we hope this decision gives more options for those looking to get onto the property ladder.” 

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