Nationwide pulls high loan-to-value mortgages from sale
Nationwide Building Society is temporarily withdrawing high loan-to-value (LTV) mortgage lending from Tuesday 31st March.
All fixed rate and tracker mortgages above 75 per cent LTV will be withdrawn from sale, either online or via brokers.
This means that new borrowers will need at least a 25% deposit or equity level in order to get a mortgage.
Focus on existing borrowers
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 Works.
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.
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.”