Nationwide has announced two changes to its mortgage criteria.
Firstly, the lender is increasing the maximum loan-to-value (LTV) available for customers requiring new interest-only lending to 75%, up from the current maximum of 60%.
At the same time, foreign nationals without indefinite leave to remain in the UK will now be able to borrow up to 85% LTV, up from 75%.
Applications above 75% LTV will be subject to minimum income requirements of £50,000 per annum for sole applicants or £75,000 for joint applicants.
Nationwide is also removing the requirement for these applicants to provide at least 25% of the total deposit from their own resources. This change applies to all applicants, regardless of the LTV.
Henry Jordan, Nationwide’s Director of Home, said: “These latest changes continue our efforts to support as many borrowers as possible, whether it’s purchasing a new property or looking for a new deal on their existing mortgage. The increase in maximum loan-to-value for new interest-only lending helps more borrowers who prefer the flexibility of interest-only. The new maximum loan-to-value available for foreign nationals also means that we will be able to support more of those customers with their mortgage needs.”
