Nationwide Expanding Access To 90% LTV Mortgage


Anyone looking for assistance in arranging a mortgage will be pleased to learn the Nationwide Building Society is looking to increase access to their range of higher loan-to-value mortgage lending.

The company will implement these changes from the second week of December. The Nationwide is set to provide the same range of 90% LTV loans to first-time buyers as they do for existing home owners looking to move house.

Buyers need support in the housing market

The Nationwide is looking to play its part in keeping the property market moving, and to provide support to buyers who need additional help in stepping onto the property ladder.

Borrowers will be able to access loans up to £500,000 over a maximum of 25 years. Rates will be aligned to those provided to first-time buyers at the 90% level. This will include a rate of 3.49% for a two-year fixed mortgage, and this will be made available at a product fee of £999.

People who already hold a mortgage will be able to borrow up to 95%, and this will be made available on a like-for-like basis. There will be no LTV restrictions on people looking to switch deals. Also, rates will be priced at the same or better than new business equivalents.

This is a positive outcome for people who feel that the best rates are offered to new customers while existing customers miss out.

It is fair to say Nationwide has been active in supporting prospective homeowners for some time during these difficult circumstances. The organisation re-entered the mortgage market in July, with temporary criteria in place. Nationwide has been recognised as the only significant lender to provide 90% LTV mortgages without any restriction.

Mortgage brokers can help you find your perfect deal

All of the Nationwide’s 90% LTV mortgages are available directly from them, but they can also be accessed via mortgage brokers. It is easy to see why many people will feel comfortable arranging this style of mortgage after speaking with a mortgage broker.

It is helpful to gain advice from experts, but if you speak to only one company or organisation, you cannot be sure you will receive the best advice. However, when you speak with a broker, you stand a better chance of finding the mortgage that is best suited to your needs.

Henry Jordan is the director of mortgages at Nationwide Building Society, and he said: “Nationwide was founded to help people into homes of their own and that remains the case as much today as it did 135 years ago. As a mutual, owned by our members, we aim to balance supporting first-time buyers into a home of their own with the need to lend responsibly. Given the uncertainty created by the pandemic, our re-entry into 90% LTV lending back in July was deliberately cautious and included enhanced criteria.”

Henry also said; “Four months on, we are increasingly confident in our approach and so are delighted to be able to expand our support for the market to include home movers whilst removing some of the temporary criteria for first-time buyers, making it easier for parents to help them take their first step onto the housing ladder.”

While there are new challenges to overcome in the housing market, people shouldn’t consider arranging a mortgage to be an impossible task. However, it is vital people accept help and assistance from professionals in the field. If you are keen to arrange a mortgage, speak to a mortgage broker or experienced adviser and make sure you are fully equipped to make an informed decision.

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