How do I qualify for Nationwide Building Society's interest-only mortgages?
Page edited and updated 17/06/2024.
Nationwide Building Society returned to the interest-only mortgage market in 2020 after pulling out during the credit crunch.
Nationwide's interest-only mortgages are available for new property purchases, remortgages and part and part lending.
Applicants will need a 40% deposit to qualify for interest-only, although the amount of equity they will need in their property depends on its location. Properties in Greater London require £300,000, lowering to £250,000 in the South East, and all other UK regions will need £200,000 equity.
As well as having a minimum amount of equity in your property, sole applicants will need to have a minimum basic income of £75,000 and £100,000 for joint applicants to qualify for interest-only. Nationwide will not take secondary incomes, bonuses, overtime or commission into its affordability calculations for interest-only applications.
Aaron Strutt, product director at Trinity Financial, says: "Nationwide is one of the largest lenders offering interest-only mortgages, and its acceptance policy is tougher than some of its main competitors. The lender pulled out during the last financial crisis and has been threatening to re-enter the market for years. Approximately 47 lenders provide interest-only mortgages."
Nationwide's maximum mortgage term is 25 years if borrowers opt for interest only. The sale of the main residence can be used as the repayment vehicle. The maximum interest-only mortgage loan amount is £5 million.
Does Nationwide offer interest-only to first-time buyers?
First-time buyers are not eligible for Natiowide's interest-only purchase applications. However, other lenders offer interest-only applications to first-time buyers.
Call Trinity Financial on 020 7016 0790 to secure an interest-only mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
The maximum loan size for Nationwide's interest-only remortgages is £2 million.
There is a maximum term of 25 years rather than the 40 year maximum for those taking full capital repayment, and the sale of the property can be used as a repayment strategy.
Nationwide has limited the availability of its interest-only mortgages and they need to be taken via a mortgage broker.
Trinity Financial's brokers have been working with Nationwide for Intermediaries its intermediary lending department. We can get a mortgage agreed quickly and efficiently.
Applicants will also need to sign a ‘sale of residence customer declaration form’ to ensure they understand the requirement to sell their property to repay the outstanding balance at term expiry.
Nationwide for Intermediaries does not charge a higher rate for its interest-only mortgages.
The lender provides some of the cheapest fixed rates in the market and has a selection of two, three and five and ten-year rates.
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