21 April 2020
- Society still accepts new applications up to 95% LTV via telephone and branch video
- Existing members can continue to borrow up to 95% LTV
- Society is also launching competitive fixed rate products for remortgages with £1,499 fee
- Fixed rate switcher products up to 60% LTV reduced by up to 0.10%
From tomorrow (Wednesday 22 April), Nationwide Building Society is extending its mortgage lending through brokers and online up to 85 per cent Loan-to-Value (LTV).
The move means new customers wishing to remortgage, as well as first time buyers and new house purchase customers choosing to apply via broker or online, can now borrow up to 85 per cent LTV.
Nationwide had temporarily withdrawn new customer lending above 75% LTV via broker or online, enabling the Society to focus support on existing members and process ongoing applications.
With valuers currently unable to carry out physical mortgage valuations, the Society recently announced that it is carrying out as many valuations as possible using remote desktop and automated valuation model (AVM). This change reflects the Society’s confidence in undertaking valuations up to 85 per cent using these alternative methods.
New customers can still apply to borrow up to 95% LTV by telephone and via Nationwide NOW – the Society’s high-definition branch video service.
Nationwide continues to focus efforts on supporting existing mortgage members and customers, whilst also continuing to process ongoing applications as much as possible. In fact, existing members moving home, borrowing more or switching product can continue to borrow up to 95 per cent LTV, while existing applications, where a product has already been reserved, will continue to progress.
Henry Jordan, Nationwide’s Director of Mortgages, said: “We continue to focus on supporting existing mortgage members and customers and ensuring that ongoing applications can be processed as quickly as possible. However, as the UK’s second largest mortgage lender, it is right that we still play an active role in the market, while maintaining the levels of service expected of us, during what are unprecedented and evolving times. That is why we have increased our Loan-to-Value limit on applications made through intermediaries and online, all while continuing to offer up to 95 per cent borrowing for existing members and for new customers via our phone and Nationwide NOW channels.”
New remortgage products
Nationwide Building Society will also, from Wednesday 22 April, be launching two new remortgage products with a £1,499 fee – two-year fixed rate at 1.19% and five-year fixed rate at 1.39%.
Both are available for loans of £300,000 or more at a maximum 60 per cent LTV and will be available for both interest only and capital repayment loans. The Society’s no fee products paying 1.69% (fixed for two and five years) are also an option for loans of £300,000 or more.
For those looking for a loan of less than £300,000, borrowers have a choice of two and five-year fixed rate mortgages with either no fee or a £999 fee, starting from 1.29%.
Nationwide is also reducing the rates on its £999 fee switcher products (up to 60 per cent LTV) by up to 0.10%.
Henry Jordan continued: “We are giving borrowers even more variety to choose a mortgage that suits their needs. By launching these new £1,499 fee products, borrowers looking to remortgage now have the opportunity to lock into a very competitive rate for either two or five years. We expect these products to be particularly popular with those looking for a larger interest only loan. And, to ensure that existing Nationwide members can benefit from the Society’s most competitive rates, we are also reducing the rates on our switcher products at up to 60 per cent Loan-to-Value.”
On Wednesday 22 April, Nationwide is increasing the rates on its two, three and five year fixed rates at 80 per cent and 85 per cent LTV by up to 0.25%. Two year tracker rates at the same LTVs will also be increased by up to 0.15%.
All rates on other products remain unchanged.