Nationwide has announced it is changing the maximum loan-to-value (LTV) amounts that it will lend to different borrower types across its lending channels.

The society said the changes reflect both the current state of the market and follow similar moves by other lenders, whilst ensuring that it continues to “support the post-Covid recovery” of the housing market.
 
Nationwide stated that its existing mortgage members will continue to be able to switch to a new mortgage deal – regardless of their LTV providing there is no increase in LTV – and that applications from existing mortgage members moving home that are above 85% LTV will also be considered on a like-for-like LTV basis.

For house purchase, remortgages and first-time buyers, the society indicated that lending will be available up to a maximum of 85% LTV, and that it is also reducing fixed rates at 60% LTV by up to 0.1% for borrowers remortgaging to Nationwide. Two-year fixed rates will now start from 1.09% with a £1,499 fee, and five-year fixed rates from 1.40% with a £999 fee.

Nationwide director of mortgages, Henry Jordan, commented: “The outlook for the mortgage market and house prices remains uncertain. As a responsible lender we must factor this uncertainty into our lending assessments, which is why we have taken the decision to reduce our maximum LTV for new business.

“Our priority at this time must be to help members keep their homes. As such, we need to ensure our members can afford their repayments, while doing what we can to protect them from falling into negative equity. We will continue to keep this situation under review and hope to return to lending at higher LTVs in the near future.”

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