Nationwide is extending its 90 per cent LTV mortgage lending to homemovers from the second week of December.
House purchase and existing mortgage customers looking to move home will have the same access to 90 per cent LTV home loans as first-time buyers.
Henry Jordan, director of mortgages at Nationwide Building Society, said: “Given the uncertainty created by the pandemic, our re-entry into 90 per cent LTV lending back in July was deliberately cautious and included enhanced criteria.
“Four months on, we are increasingly confident in our approach and so are delighted to be able to expand our support for the market to include home movers whilst removing some of the temporary criteria for first-time buyers, making it easier for parents to help them take their first step onto the housing ladder.”
First-time buyers and homemovers will be able to borrow up to £500,000 over a maximum 25-year term. Products include a two-year fixed rate at 3.49 per cent, with a product fee of £999.
According to the building society, it has helped 21,000 first-time buyers step onto the property ladder in the six months to September 30, an equivalent of one in six of all first-time buyers.
It re-entered the 90 per cent LTV mortgage market in July with what it described as “temporary, but necessary” criteria to protect service and lend responsibly.
The building society said it was in a position to expand access to 90 per cent LTV lending to house purchase and existing mortgage customers moving home, as well as remove the temporary criteria applied to fully gifted deposits.
A maximum gift of 25 per cent of the deposit amount currently applies to all lending above 85 per cent LTV.
But from the second week of December, its position on gifted deposits will be “aligning” to standard policy as the building society resumes accepting fully gifted deposits at 90 per cent LTV for new applications.
Carl Shave, director at Just Mortgage Brokers, commented: “Nationwide have once again shown their commitment to the mortgage market with the introduction of their 90 per cent LTV loans to a wider audience.
“With their plan to also allow fully gifted deposits to this LTV they are demonstrating a return of confidence in this sector.
“Whilst the higher loan to value business still comes at a premium in the rates offered, it is encouraging none the less that a top five lender has expanded its availability and the hope now is that others look to follow suit.”
In addition, some homemovers with an existing Nationwide mortgage, and who are looking to borrow above 85 per cent LTV, will no longer be limited to borrowing on a like-for-like basis based on their current LTV.
From the second week of December, a like-for-like LTV basis will only apply for lending between 90 and 95 per cent.
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