The Nationwide Building Society has increased the maximum loan to value (LTV) from 80 to 90% for new and existing mortgage customers borrowing to pay off a Help to Buy Equity Loan in full.
Previously mortgage borrowers with a Help to Buy Equity Loan could borrow up to 80% LTV with Nationwide to pay off the equity share.
Mortgage members will be able to access Nationwide’s core mortgage rates, with the 2 year fixed rate products at 90% LTV starting at 1.89% with a £999 fee, and the 5 year fixed rate products starting at 2.74% with a £999 fee.
Henry Jordan, Nationwide’s director of mortgages, said: “It is five years since Nationwide began offering mortgages for Help to Buy Equity Loan customers and we continue to support a significant proportion of first time buyers and house purchase customers looking to access this option.
“This increase in maximum loan to value will enable us to support more customers, both existing members and those looking to remortgage to the Society. Those due to pay interest on the equity loan potentially also face the prospect of owing an increased amount in the future if their property increases in value.
“This change helps customers looking to take the path towards full home ownership, ensuring that by the end of the mortgage term they will own their home outright.”