Nationwide improves affordability calculation for like-for-like remortgages
Nationwide for Intermediaries has eased the calculation it uses to work out how much borrowers can use when they apply for a remortgage.
The building society says remortgage applications will be subject to a lower rate stress test than those applied to property purchases and remortgages with additional borrowing.
The mortgage amount must be less than or equal to the outstanding mortgage balance with the current lender, although applicants can add arrangement fees up to £1,000 to the loan.
Nationwide's reduced stress test is only for applicants who have no more than one mortgaged property and will not apply if there are any other mortgage properties in the background.
Aaron Strutt, product director at Trinity Financial, says: “Some of the lenders are offering more generous mortgages when applicants remortgage and do not want to borrow more money. They also provide bigger mortgages when they take a five-year fix.
“Santander for Intermediaries is offering one of the most generous remortgage calculations when borrowers are not raising any more money. The maximum income multiple is 5.5 times salary, and there is no minimum income qualification required.”
Call Trinity Financial on 020 7016 0790 to secure a mortgage
Nationwide for Intermediaries is offering a competitively priced two-year fixed rate available for remortgages.
It is priced at 1.29% and it has a £999 arrangement fee. Applicants will need a 40% deposit to qualify and after the fixed-rate, the mortgage will automatically revert to Nationwide's 4.24% standard variable rate. The overall cost for comparison is 3.9% APRC.
The minimum loan size is £25,000 and the maximum loan size is £1 million.
Nationwide is currently taking an average of 12 days to produce a mortgage offer when applications are submitted via mortgage brokers.