The Society reduced its maximum LTV for flats (excluding new-builds) to 85 per cent at the height of the pandemic due to concerns about the economic conditions at the time.
The change will be beneficial for first-time buyers, with 25 per cent1 purchasing a flat in 2022. This compares with less than 10 per cent1 of home movers. This change will particularly help those who live in large urban areas like London, where last year over 35 per cent1 of first time buyer purchases were flats.
Nationwide already lends at 95 per cent LTV for new-build flats via the Deposit Unlock scheme.
Henry Jordan, Director of Home at Nationwide Building Society, said: “We are pleased to be able to return to higher loan to value lending on flats – a move that predominantly supports the first-time buyer market. With flats representing one in four purchases for first-time buyers we hope this decision gives more options for those looking to get onto the property ladder.”
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