Mortgage News
Nationwide ups maximum LTV for new-build houses
Nationwide will now lend up to 90% loan to value (LTV) on new-build houses, an increase from the previous limit of 85%.
Nationwide said this would provide further support for the housebuilding sector and the government’s housing plans.
This means borrowers looking to purchase a new-build house will be accepted with just a 10% deposit.
The change is effective from today.
Ian Andrew, Nationwide’s director of intermediary relationships, said: “As a mutual, we are committed to creating a vibrant and growing housing market and believe this change will demonstrate that we are fully behind the government’s housing ambitions.
“By increasing our maximum LTV on lending for new-build houses, we hope to help even more people into their first home or move onwards to their next.”
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A number of mainstream lenders have broadened their criteria and options for newly built properties.
At the start of this year, Santander released options at 95% LTV for borrowers purchasing a new-build house or flat. Later, the lender extended its offering with three-year fixed deals.
NatWest also increased the maximum it would lend to 90% LTV for a new-build house and to 85% for a new-build flat.
Just this week, HSBC also raised the lending limit from 80% to 85% LTV on new-build flats and from 85% to 90% on new-build houses.