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.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
