Residential  

Nationwide resumes high LTV mortgage lending

Nationwide resumes high LTV mortgage lending

Nationwide will be offering high loan to value mortgages of up to 85 per cent to new customers from today (April 22), after pulling the products last month.

On March 31 the lender temporarily withdrew mortgages above 75 per cent LTV to focus on supporting its existing customers and processing ongoing applications during the coronavirus crisis.

The withdrawal affected remortgage, first time buyer and new house purchase customers, as well as Nationwide’s buy-to-let arm The Mortgage Works.

Existing customers can still borrow up to 95 per cent LTV, in addition to new customers applying by telephone and via the lender’s HD branch video service, Nationwide Now.

The lender is also increasing rates on the 80 per cent and 85per cent LTV mortgages for its two, three and five year fixed rates by up to 0.25 percentage points, and two-year tracker rates by up to 0.15 percentage points.

On the decision to increase its LTV limit Henry Jordan, director of mortgages at Nationwide, said: “As the UK’s second largest mortgage lender, it is right that we still play an active role in the market, while maintaining the levels of service expected of us, during what are unprecedented and evolving times.”

Restrictions on physical property valuations and the government's lockdown have been affecting the industry and a range of lenders have temporarily reduced their maximum LTVs.

Nationwide is currently carrying out valuations via remote desktop and an automated valuation model. The society has said it is confident in undertaking valuations up to 85 per cent using these methods.

David Hollingworth, associate director of communications at L&C Mortgages, said lenders have dealt with a significant amount of change and customer enquiries in recent weeks as a result of the coronavirus crisis.

He said: “What is really encouraging is to see that lenders are working as hard as possible to get to grips with the service and resource issues that this can present and quickly expand their product offering.

"This move from Nationwide is an important one in supporting borrowers and advisers with the right products and sends a clear signal that the mortgage market remains open.”

chloe.cheung@ft.com