Nationwide Building Society is today increasing the lending limit for many first-time buyers to provide further support to them and the housing market.
Britain’s second largest mortgage lender today announces it will offer 90 per cent Loan-to-Value (LTV) mortgages for first-time buyers from Monday, July 20th, with no set limit on the number of home loans available.
Nationwide welcomes the government’s announcement that stamp duty will be frozen for properties up to £500,000 and hopes it will drive the speed of recovery by injecting energy into the market ahead of the holiday season, with first-time buyers able to save up to £10,000 when moving into their first home. This support, combined with a more active housing market following the lifting of lockdown restrictions, has provided an opportunity for the Society to return to higher LTV lending. Nationwide hopes the move will provide some more reassurance and opportunity for its members and the market following a period of such uncertainty.
Nationwide's 90 per cent LTV mortgages for first-time buyers will be available direct with Nationwide (telephone, in branch and online) as well as via brokers. As a responsible lender, enhanced criteria will apply.
Henry Jordan, Director of Mortgages at Nationwide Building Society, said: “First-time buyers are vital to breathing life into the housing market and economy. We understand one of the biggest barriers to homeownership is raising a deposit. As a building society, owned by our members, we are extremely well placed to look at ways of helping people into a home of their own. While we will continue to monitor the market carefully, we feel it is the right time to enhance our lending, initially to those looking for their first home. We welcome the government’s announcement on stamp duty and hope our combined changes create a positive impact on a market that, despite being in relatively good health, is still recovering.”
Miles Shipside, Commercial Director and Housing Market Analyst at Rightmove, added: “The ability for lenders to offer lower deposit mortgages to first-time buyers is critical to helping the market recover more quickly. The stamp duty holiday is of limited benefit to those first-time buyers who are already exempt from it in many parts of the country, and so Nationwide’s return to 90% loan-to-value is likely to help significantly more for those trying to get their first step on the ladder. There’s been record demand for property on Rightmove since the market reopened which has been boosted even further by the stamp duty announcement, all of which should help activity levels over the coming months.”
Nationwide will continue to review the market and its products to ensure it is lending responsibly at the same time as helping first-time buyers achieve their housing goals.
Existing mortgage members moving home will be able to continue borrowing up to 95 per cent LTV, while for further advances, the maximum has increased to 90 per cent LTV.
