The Nationwide Building Society is lowering the maximum loan to value (LTV) amount that it will lend to different borrower types across all of its lending channels.
The UK’s largest building society said the changes were due to “unprecedented times and an uncertain mortgage market”.
The new maximum LTVs are:
- Existing mortgage members – will continue to be able to switch to a new mortgage deal regardless of their LTV providing there is no increase in LTV. Applications from existing mortgage members moving home that are above 85% LTV will also be considered on a like for like LTV basis.
- House purchase, remortgages and first-time buyers – lending available up to a maximum of 85% LTV.
The mutual is also reducing fixed rates at 60% LTV by up to 0.1 percentage points for borrowers remortgaging to the Society. Two-year fixed rates will now start from 1.09% with a £1,499 fee and five-year fixed rates from 1.40% with a £999 fee.
Henry Jordan, director of mortgages at the Nationwide Building Society, said: “The outlook for the mortgage market and house prices remains uncertain. As a responsible lender we must factor this uncertainty into our lending assessments, which is why we have taken the decision to reduce our maximum LTV for new business.
“Our priority at this time must be to help members keep their homes. As such, we need to ensure our members can afford their repayments, while doing what we can to protect them from falling into negative equity.
“We will continue to keep this situation under review and hope to return to lending at higher LTVs in the near future.”