Nationwide returns to interest-only mortgage market

by Aaron Strutt

Mar 03 2020

Nationwide for Intermediaries has announced plans to re-enter the interest-only mortgage market after an eight-year gap.

An article in Mortgage Strategy magazine says the new interest-only products will be aimed at high earners and applicants will either need to have an income of £75,000 or £100,000 joint income to qualify.

Applicants will need a 40% deposit to qualify for Nationwide's interest-only mortgage and have a minimum equity that varies according to region: £300,000 in London, £250,000 in the South East, and £200,000 elsewhere.

The sale of the main residence is likely to be accepted as a repayment vehicle, which Nationwide says will help mitigate the risk of future negative equity.

Aaron Strutt, product director at Trinity Financial, says: "Over the last couple of years many of the banks and building societies have come back into the interest-only market and there is a lot of choice.

"Our brokers have access to around 50 lenders offering interest-only and they have a mixture of qualification requirements. The lenders do not tend to charge a higher rate for interest-only." 

Call Trinity Financial on 020 7016 0790 to secure an interest-only mortgage