Nationwide has increased the maximum loan-to-value (LTV) for new interest only borrowing to 75%, up from 60%, and raised the LTV cap for foreign nationals without indefinite leave to remain in the UK to 85%.
The mutual said the changes, which take effect today (17th March), would increase its support for borrowers.
For new interest only borrowing, Nationwide has raised the LTV limit to 75% while keeping all other eligibility criteria unchanged, including minimum equity requirements.
For foreign nationals without indefinite leave to remain, the maximum LTV has increased from 75% to 85%. Applications above 75% LTV will now be subject to minimum income requirements of £50,000 per annum for sole applicants or £75,000 for joint applicants. Nationwide has also removed the requirement for these applicants to provide at least 25% of the total deposit from their own resources, regardless of LTV.
Henry Jordan, Nationwide’s director of home, said: “These latest changes continue our efforts to support as many borrowers as possible, whether it’s purchasing a new property or looking for a new deal on their existing mortgage.
“The increase in maximum loan-to-value for new interest only lending helps more borrowers who prefer the flexibility of interest only. The new maximum loan-to-value available for foreign nationals also means that we will be able to support more of those customers with their mortgage needs.”
Stephanie Daley, director of partnerships at Alexander Hall, added: “Nationwide’s recent enhancements to their lending criteria mark a significant step forward in supporting a broader range of borrowers and means more of our clients will be able to access their product range.
“The increase in the maximum LTV for new interest only lending suits our clients who want more flexibility and options when choosing their mortgage. Additionally, allowing foreign nationals without indefinite leave to remain to borrow up to 85% LTV is a game-changer and removing the deposit requirement further enhances accessibility. It’s great to see more options available for these good quality borrowers.”
