Residential  

Building society returns to 85% LTV

Building society returns to 85% LTV
 Credit: Simon Dawson/Bloomberg

The Nottingham has returned to 85 per cent LTV lending after what it described as an “extremely challenging” year.

The building society has launched two five-year fixed products without upfront fees. A rate of 2.95 per cent is available for remortgage-only, while a purchase and remortgage product is available at 3.10 per cent.

Nikki Warren-Dean, head of intermediary sales at The Nottingham, said: “It’s great that we have returned to 85 per cent LTV - brokers can now benefit from this new LTV twinned with our service levels.

“We are hoping this move contributes to a more positive year for those looking to get themselves onto the property ladder, to move along it or stay where they are but in a more affordable way.

“What has been important has been to get to the place where we are today in a phased and measured way. There can be no doubting last year was extremely challenging for everyone, but hopefully we can play our part in 2021 being a lot more positive in the mortgage space.” 

The Nottingham’s return to 85 per cent LTV comes after it resumed full mortgage distribution across its broker network in November, following its return to the marketplace earlier in the month via a limited distribution to maintain expected levels of service.

The building society returned to the mortgage marketplace after temporarily withdrawing its products in September following “unprecedented” levels of applications in the summer.

Other lenders have also been affected by high demand for mortgage applications, as Buckinghamshire Building Society temporarily suspended new decisions in principle (DIPs) last month to deal with “unprecedented demand”.

The news of The Nottingham’s return to higher LTVs coincides with Coventry for Intermediaries’ re-entry into the 90 per cent LTV market with products for first-time buyers, remortgagers and homeowners.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “By offering a number of 90 per cent deals over controlled periods in 2020, we managed to maintain excellent service levels while offering some respite to those looking for high LTV products.

"Our short-term launches were both popular and effective in the circumstances, but the market for 90 per cent LTVs is now beginning to strengthen.

“We can now continue to support the market this year by offering competitive, high LTV products along with some certainty for brokers that those types of products will be available for some time.”

chloe.cheung@ft.com

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.