Nottingham BS  

The Nottingham hikes upper loan limit

The Nottingham hikes upper loan limit

The Nottingham has almost doubled the maximum borrowing limit on its higher loan-to-value products, in an effort to help more borrowers with lower deposits onto the property ladder.

The lender has increased the maximum loan size on its 95 per cent loan-to-value (LTV) residential range from £275,000 to £500,000.

The Nottingham reported 70 per cent of its applications for 95 per cent LTV products were made by first-time buyer last year.

Nikki Warren-Dean, head of The Nottingham for Intermediaries, said: "We know saving up for a deposit can be tough and for some, even saving 5 per cent is a challenge.

"Our previous maximum threshold was relatively low when you consider the price of a house or flat in areas like the South East and London - it was just not an option for those buyers so we acted on feedback and increased this to £500,000.

"We are confident this will help more people, including many first time buyers with whom the product is so popular, get their home sooner."

Daniel Bailey, principal at Middleton Finance, said The Nottingham tended to provide solutions to borrowers where the high street lenders have not been able to help.

He said: "I have had a few cases where I have not been able to use them due to their maximum lending of £275,000.

"I think this is a positive step for borrowers looking to buy in higher value areas and will offer another option to borrowers."

Mr Bailey added: "The deposit is one of the biggest obstacles for first-time buyers getting on the property ladder.

"I encourage all my clients to save as much of a deposit as possible, however for many borrowers 5 per cent is the maximum they can save."