Nationwide has unveiled £1 billion of additional lending over the next year for house buyers at 95% LTV.
The UK’s largest building society is offering a new range of fixed rate 95% LTV deals, starting at under 4%.
The products are not part of any scheme, such as Help to Buy, and are available to both first time buyers and home movers. This is the first time Nationwide has offered 5% deposit mortgages outside the limits of a scheme to all customers since 2008.
The new mortgages will also be offered both through brokers as well as direct through Nationwide.
Nationwide aims to support one in five first time buyers into a home of their own. It cites market data which suggests that 79% of first time buyers choose to access mortgage deals through a broker and the new 95% LTV range will widen the choice brokers can offer to those with small deposits.
Rates for the range of 5% deposit mortgages start from 3.99% with a £999 fee for the 2 year fixed rate deal. There are also 3 and 5 year fixed rate deals, starting at 4.59% and 4.79% respectively.
In addition, first time buyers will continue to receive a £500 cashback on all Nationwide mortgage deals.
Nationwide’s Save to Buy scheme, through which buyers commit to saving towards a deposit and in return receive a cashback of up to £1,000 on completion of their Save to Buy mortgage, will be available at a 0.20 percentage point discount. Rates for the 2 year fixed rate mortgage product start from 3.79% with a £999 fee.
Henry Jordan, Nationwide’s head of mortgages, said: “Nationwide’s move significantly increases the Society’s lending in the first time buyer market and widens consumer choice. It aims to build on Nationwide’s traditionally strong support for first-time buyers by offering more mortgage options to those with smaller deposits and helping them to achieve their dream of purchasing a home of their own.
“Nationwide also offers tangible benefits to mortgage customers that go beyond the competitive headline rates. This includes Nationwide’s £500 cashback offer to all first time buyers, or more if they use our Save to Buy mortgage products. Our mortgage deals, combined with other support Nationwide provides such as first time buyer events and independent guides, demonstrate how Nationwide continually aims to do more for its customers.”