Nationwide reduces maximum LTV for new lending

Jessica Bird

June 17, 2020

Nationwide Building Society commission income

Nationwide Building Society has moved to reduce the maximum loan-to-value (LTV) amount that it will lend to borrowers across all of its lending channels. 

This aims to help the society continue lending responsibly during uncertainties in the mortgage market at present.

Existing mortgage members will continue to be able to switch to a new deal, provided there is no increase in LTV.

Applications from existing mortgage members moving home that are above 85% LTV will also be considered on a like-for-like LTV basis.

For house purchase, remortgage and first-time buyer customers, lending will be available up to a maximum of 85% LTV.

Nationwide is also reducing fixed rates at 60% LTV by up to 0.1% for borrowers remortgaging to the society.

2-year fixed rates will now start from 1.09% with a £1,499 fee and 5-year fixed rates from 1.40% with a £999 fee.

Henry Jordan, director of mortgages at Nationwide Building Society, said: “The outlook for the mortgage market and house prices remains uncertain.

“As a responsible lender we must factor this uncertainty into our lending assessments, which is why we have taken the decision to reduce our maximum LTV for new business.

“Our priority at this time must be to help members keep their homes.

“As such, we need to ensure our members can afford their repayments, while doing what we can to protect them from falling into negative equity.

“We will continue to keep this situation under review and hope to return to lending at higher LTVs in the near future.”

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