90% LTV for first-time buyers: Nationwide’s Update
Nationwide has announced that it is planning to restart its mortgage product range to include 90% LTV for first-time buyers.
First-time buyers will be able to to get a Nationwide 90% LTV deal from Monday 20 July 2020. However, the deals will be available direct from the building society or through a mortgage broker.
The UK’s largest building society had restricted its mortgages in June in response to the coronavirus crisis.
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Nationwide withdrew from lending to first-time buyers last month when it pulled its 90% and 95% LTV products from the market. The impact of Nationwide’s withdrawal from the market was significant, especially as it came at a time when many other lenders were pulling high LTV deals.
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Henry Jordan, director of mortgages at Nationwide, said:
“First-time buyers are vital to breathing life into the housing market and economy. We understand one of the biggest barriers to homeownership is raising a deposit.”
“We welcome the Government’s announcement on stamp duty and hope our combined changes create a positive impact on a market that, despite being in relatively good health, is still recovering.”
Lower-deposit mortgages to first-time buyers:
Miles Shipside, the commercial director and housing market analyst at Rightmove, said:
“The ability for lenders to offer lower-deposit mortgages to first-time buyers is critical to helping the market recover more quickly.”
“The stamp duty holiday is of limited benefit to those first-time buyers who are already exempt from it in many parts of the country. And so Nationwide’s return to 90 per cent loan-to-value is likely to help significantly more for those trying to get their first step on the ladder.”