Nationwide Building Society has increased its maximum loan to value (LTV) to 90 per cent for customers borrowing to pay off a Help to Buy (HTB) equity loan in full.
Previously, borrowers with a HTB equity loan could borrow up to 80 per cent LTV with Nationwide to pay off their equity share.
Mortgage holders will now also be able to access Nationwide’s core rates, with the 2-year fixed rate products at 90 per cent LTV starting at 1.89 per cent with a £999 fee, and the 5-year fixed rate products starting at 2.74 per cent with a £999 fee.
Henry Jordan, Nationwide’s director of mortgages, said: “It is five years since Nationwide began offering mortgages for Help to Buy Equity Loan customers and we continue to support a significant proportion of first time buyers and house purchase customers looking to access this option.
“This increase in maximum loan to value will enable us to support more customers, both existing members and those looking to remortgage to the Society.
"Those due to pay interest on the equity loan potentially also face the prospect of owing an increased amount in the future if their property increases in value.
"This change helps customers looking to take the path towards full home ownership, ensuring that by the end of the mortgage term they will own their home outright.”
Nationwide’s HTB equity loan products for new build house purchase were launched in May 2013, and the Society has continued to cater for a significant proportion of the market ever since.
For those remortgaging to the Society there is the option of free standard legals or a £500 cashback. This gives customers the choice between utilising the cashback to use their own conveyancer or taking the free legals alternative.
Nationwide offers a range of additional benefits for both first time buyers and home movers. All standard mortgage valuations are fee-free, while first time buyers receive a £500 cashback to help with costs.
Alex Reynolds, IFA at London-based Advies Private Clients, said: “It is good to see that Nationwide are increasing their LTV to help Help to Buy clients looking to buy off their loan. This will allow them to refinance on to better rates sooner and will be very welcome for many.”