Nationwide is the latest lender to withdraw high loan-to-value mortgages as it attempts to navigate the coronavirus pandemic and economic fallout.
The building society has temporarily withdrawn mortgages above 75 per cent LTV from sale both online and via brokers.
Nationwide said the move would allow it to focus on existing members and mortgage applications at this "difficult time".
The restriction is effective from today (March 31) but will not impact existing applications, but will apply to remortgage products, first-time buyers, new house purchase customers and the lender's buy-to-let arm The Mortgage Works.
Sara Bennison, who is responsible for Nationwide’s products, said the lender was facing an "extremely high number" of enquiries about existing mortgages and ongoing applications.
Ms Bennison said: "We have taken this decision on a temporary basis although, by continuing to offer home loans up to 75 per cent loan-to-value, we can continue supporting the housing market.
"We continue to monitor for any updates to government advice and, in this ever-evolving situation, we ask members and brokers to bear with us and thank them for their patience."
Nationwide said it was offering three-month mortgage offer extensions in some cases and alternative valuation methods to support existing applications.
Last week the government put the brakes on the mortgage market as it urged those in the early stages of buying or selling to delay the process amid warnings no visitors were allowed into properties for the time being.
Nationwide is the latest in a number of lenders to have pulled products from the market in recent weeks, as banks and building societies push to manage the coronavirus fallout.
Major lender Barclays limited the amount of mortgage applications it is accepting from brokers in a bid to restrict the flow of applications through its case booking process and has limited its high loan-to-value products.
Lloyds Banking Group — which includes Halifax, Scottish Widows and BM Solutions and is the UK’s largest lender — capped its maximum lending at 60 per cent LTV while Vida Homeloans and Together Money halted all new mortgage lending.
rachel.mortimer@ft.com
What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.
