Nationwide Building Society is temporarily withdrawing (from Tuesday 31 March) high loan-to-value (LTV) mortgage lending as it focuses on supporting existing members and processing ongoing applications while the coronavirus outbreak continues to impact the nation.
The move, which does not impact existing applications, means all fixed rate and tracker mortgages above 75 per cent LTV will be withdrawn from sale, either online or via brokers, for remortgage, first time buyer and new house purchase customers. Existing members moving home, taking further borrowing or switching product will not be impacted by the changes. The temporary withdrawal of products above 75 per cent LTV also applies to the Society’s buy-to-let arm, The Mortgage Works1
The decision has been taken to ensure that both the Society and TMW can focus its efforts on supporting existing mortgage members and customers, whilst also continuing to process ongoing applications as much as possible. Existing applications, where a product has already been reserved, will continue to progress.
The Society will continue to offer mortgages at 75 per cent LTV and below. While face-to-face meetings are currently not taking place due to coronavirus, applications and appointments are still able to be held over telephone and Nationwide Now – the Society’s high-definition video service in branch.
This latest announcement follows on from Nationwide and TMW introducing enhanced measures to support existing mortgage applications (This link will open in a new window). These include three-month mortgage offer extensions when the existing offer is within 30 days of expiry as well as alternative valuation methods such as automated valuation model (AVM).
Sara Bennison, who is responsible for Nationwide’s Products and Propositions, said: “As the UK’s second largest mortgage lender, and as a member-owned organisation, we need to maintain the levels of service expected of us in the face of an extremely high number of enquiries about existing mortgages and ongoing applications.
“That is why we have taken this decision on a temporary basis although, by continuing to offer home loans up to 75 per cent loan-to-value, we can continue supporting the housing market.
“We continue to monitor for any updates to government advice and, in this ever-evolving situation, we ask members and brokers to bear with us and thank them for their patience.”
