Nationwide Building Society has announced that it will recommence lending at 95% loan-to-value (LTV) on non-new build flats, starting from today, 9th June 2023.
This move marks a significant change from the society’s previous cap on its maximum LTV for flats at 85%, a decision made at the peak of the pandemic due to economic uncertainties.
This change is expected to provide a much-needed boost to first-time buyers, who accounted for 25% of flat purchases in 2022, compared to less than 10% by home movers.
This will particularly benefit those in large urban areas, including London, where over 35% of first-time buyer purchases in the previous year were flats.
Nationwide has already been lending at 95% LTV for new-build flats through the Deposit Unlock scheme.
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.”
