Nationwide offering 95% lending on flats again

by Aaron Strutt

Jun 15 2023

Nationwide for Intermediaries has returned to lending at 95 per cent loan to value (LTV) on non-new build flats.

The Society reduced its maximum loan-to-value for flats (excluding new-builds) to 85 per cent at the height of the pandemic due to concerns about the economic conditions at the time.

The change should benefit first-time buyers, with around 25 per cent purchasing a flat in 2022.  This compares with less than 10 per cent of home movers. Nationwide says this change will particularly help those who live in large urban areas like London, where last year over 35 per cent of first-time buyer purchases were flats.

Nationwide already lends at 95 per cent loan-to-value for new-build flats via the Deposit Unlock scheme.

Henry Jordan, Director of Home at Nationwide Building Society, said: “We are pleased to be able to return to higher loan-to-value lending on flats – a move that predominantly supports the first-time buyer market. With flats representing one in four purchases for first-time buyers, we hope this decision gives more options for those looking to get onto the property ladder.”

More lenders offering 95% loan-to-value mortgages

More banks and building societies are offering five per cent mortgages on flats although the mortgage rates tend to be higher than the most competitively priced deals. 

Nationwide still offering Helping Hand mortgages to first-time buyers with 5.5 times salary income multiples 

Nationwide for Intermediaries has changed its mortgage criteria to make it easier for higher earners to secure larger mortgages.  

• All applicants must be first-time buyers
• 5 and 10-year fixed rates available at all LTV tiers up to 95%
• Minimum income of £37,000 sole applicants, £55,000 for joint applicants. All income sources (except self-employed income) can be included.
• The maximum lending limits depend on the application.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change.

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