Nationwide extends mortgage lending up to 85% LTV and launches two remortgage products
Nationwide Building Society is extending its mortgage lending through brokers and online up to 85% loan-to-value ratio (LTV).
New customers wishing to remortgage, as well as first-time buyers and new house purchase customers choosing to apply via a broker or online, will now be able to borrow up to 85% LTV.
The building society had previously temporarily withdrawn new customer lending above 75% LTV via brokers or online, enabling it to focus support on existing members and ongoing applications.
Nationwide Building Society recently announced that it is carrying out as many as valuations as possible using desktop and automated valuation models (AVM) while physical valuations are impossible during lockdown.
The move to extend mortgage lending up to 85% LTV marks its confidence in undertaking valuations using these alternative methods.
New customers can still apply to borrow up to 95% LTV by telephone and via Nationwide Now, the society’s high-definition branch video service.
Existing members moving home, borrowing more or switching products can continue to borrow up to 95% LTV, while existing applications will progress where a product has already been reserved.
Henry Jordan, director of mortgages at Nationwide, said: “We continue to focus on supporting existing mortgage members and customers and ensuring that ongoing applications can be processed as quickly as possible.
“However, as the UK’s second largest mortgage lender, it is right that we still play an active role in the market, while maintaining the levels of service expected of us, during what are unprecedented and evolving times.
“That is why we have increased our loan-to-value limit on applications made through intermediaries and online, all while continuing to offer up to 95% borrowing for existing members and for new customers via our phone and Nationwide NOW channels.”
The building society will also launch two remortgage products with a £1,499 fee, a 2-year fixed rate at 1.19% and a 5-year fixed rate at 1.39%.
Both will be available for loans of £300,000 or more, at a maximum of 60% LTV, for both interest-only and capital repayment loans.
Nationwide Building Society’s 2-year and 5-year no-fee products, paying 1.69%, are also an option for loans of £300,000 or more.
For loans of less than £300,000, borrowers have a choice of 2 and 5-year fixed rate mortgages with either no fee or a £999 fee, starting from 1.29%.
Nationwide is also reducing rates on its £999 fee-switcher products, up to 60% LTV, by up to 0.10%.
Nationwide is increasing the rates on its 2, 3 and 5-year fixed rates at 80% and 85% LTV by up to 0.25%; 2-year tracker rates at the same LTVs will also be increased by up to 0.15%.
All rates on other products remain unchanged.
Jordan said: “We are giving borrowers even more variety to choose a mortgage that suits their needs.
“By launching these new £1,499 fee products, borrowers looking to remortgage now have the opportunity to lock into a very competitive rate for either two or five years.
“We expect these products to be particularly popular with those looking for a larger interest only loan.
“And, to ensure that existing Nationwide members can benefit from the society’s most competitive rates, we are also reducing the rates on our switcher products at up to 60 per cent loan-to-value.”