Nationwide has announced changes to its mortgage lending criteria, increasing the maximum loan-to-value (LTV) for interest-only borrowing and foreign national applications.
The adjustments aim to widen access to Nationwide’s mortgage products for a broader range of borrowers.
The maximum LTV for new interest-only lending has been raised to 75% from 60%. All other eligibility criteria, including minimum equity requirements, remain unchanged.
Foreign nationals without Indefinite Leave to Remain in the UK can now borrow up to 85% LTV, up from the previous 75% cap. Applications above 75% LTV will be subject to minimum income requirements of £50,000 per annum for sole applicants or £75,000 for joint applicants.
Additionally, Nationwide has removed the requirement for these applicants to provide at least 25% of the deposit from their own resources.
Henry Jordan, Nationwide’s director of home, said the changes are part of the building society’s efforts to support a wider range of borrowers:
He added: “These latest changes continue our efforts to support as many borrowers as possible, whether it’s purchasing a new property or looking for a new deal on their existing mortgage. The increase in maximum loan-to-value for new interest-only lending helps more borrowers who prefer the flexibility of interest-only.
“The new maximum loan-to-value available for foreign nationals also means that we will be able to support more of those customers with their mortgage needs.”
Stephanie Daley, director of partnerships at Alexander Hall, welcomed the updates, saying: “Nationwide’s recent enhancements to their lending criteria mark a significant step forward in supporting a broader range of borrowers and means more of our clients will be able to access their product range.
“The increase in the maximum LTV for new interest-only lending suits our clients who want more flexibility and options when choosing their mortgage. Additionally, allowing foreign nationals without Indefinite Leave to Remain to borrow up to 85% LTV is a game-changer and removing the deposit requirement further enhances accessibility. It’s great to see more options available for these good quality borrowers.”
