Nationwide Building Society has introduced a major expansion of its interest-only mortgage range, including higher loan-to-value limits, broader repayment options and – for the first time – access for first-time buyers.

From today, the mutual will lend on an interest-only basis up to 75% LTV, or up to 85% for part interest-only, part capital repayment loans.

The maximum loan size rises to £5 million, while the maximum term has been extended to 40 years or until retirement, whichever comes sooner.

The society has also widened the range of acceptable repayment plans. In addition to the sale of the main residence, borrowers can now use UK-based savings, investments, pension funds or other properties as repayment vehicles.

To qualify, applicants must have a minimum eligible income of £75,000 for sole applications, or £100,000 jointly – unless one applicant earns at least £75,000.

The move marks the first time Nationwide has opened interest-only borrowing to first-time buyers. Previously, its range was limited to movers and remortgagers through intermediaries. Nationwide re-entered the interest-only market in 2020, having withdrawn from the sector several years earlier.

Carlo Pileggi, head of mortgage products at Nationwide, said: “We are delighted to be able to expand and enhance our interest-only offering. Interest-only can be a great option for customers who have a suitable repayment vehicle and want the flexibility provided by lower monthly payments.

“These changes, along with robust criteria, mean we will be able to increase the support we can provide borrowers looking for more flexibility, while ensuring Nationwide continues to lend responsibly.

“As the country’s second largest lender, it is natural that we continue to look at the products we offer, including those we make available through brokers, to ensure we can help them meet as many of their clients’ needs as possible.”