Nationwide is increasing the maximum loan-to-value (LTV) for customers remortgaging from other lenders to the society.
From tomorrow (1 November) the building society is increasing the LTV for remortgage on a like-for-like basis from 85 per cent LTV to 90 per cent.
Rates for the two-year 90 per cent LTV remortgage product start at 2.39 per cent with a £999 fee and 2.79 per cent with no fee.
There is also a three-year product option, starting at 2.74 per cent, and five-year products at 3.19 per cent with a £999 fee and 3.39 per cent with no fee.
Remortgage customers are also offered a free standard valuation and the choice between free standard legal work and £250 cashback.
Henry Jordan, Nationwide’s head of mortgages, said: “We are extending our range of remortgage products to 90 per cent LTV in response to growing demand and to help the most customers possible.
“This will be particularly useful for first-time buyers who bought with a smaller deposit and are now looking for a lower rate at the end of their current deal.
“With the combination of competitive rates and access to additional benefits, Nationwide will continue to offer mortgage deals that are amongst the best on the high street.”
Paul Dorward, mortgage adviser at Pad Financial, said Nationwide were clearly confident the housing market isn’t heading for a price crash in the next two years if it was chasing 90 per cent LTV business.
He said: “These deals are pretty competitive. It is great to see some more competition in the 90 per cent LTV remortgage space.”
emma.hughes@ft.com
