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Nationwide enhances lending options for first-time buyers

Nationwide Building Society has increased the lending limit for first-time buyers following the government’s temporary changes to stamp duty regulations, to provide further support to them and the housing market.

The lender will offer 90% loan-to-value (LTV) mortgages for first-time buyers from Monday 20 July, with no set limit on the number of home loans available.

These will be available direct from Nationwide or via a broker; enhanced criteria will apply.

Existing mortgage members moving home will be able to continue borrowing up to 95% LTV, while for further advances, the maximum has increased to 90% LTV.

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Henry Jordan, director of mortgages at Nationwide Building Society, 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.

“As a building society, owned by our members, we are extremely well placed to look at ways of helping people into a home of their own.

“While we will continue to monitor the market carefully, we feel it is the right time to enhance our lending, initially to those looking for their first home.

“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.”

Miles Shipside, commercial director and housing market analyst at Rightmove, added: “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% loan-to-value is likely to help significantly more for those trying to get their first step on the ladder.

“There’s been record demand for property on Rightmove since the market reopened which has been boosted even further by the stamp duty announcement, all of which should help activity levels over the coming months.”

By Jessica Bird

Source: Mortgage Introducer

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New Covid-19 support package from Nationwide

Nationwide has guaranteed that none of the society’s mortgage-holders will lose their home due to coronavirus.

Nationwide has launched a Home Support Package to help customers struggling financially due to Covid-19.

The society is offering extended support for people financially impacted by the outbreak and has put in place a range of options for both homeowners and tenants.

The move comes after the FCA announced that mortgage borrowers will be able to ask lenders for a second three-month mortgage payment holiday.

In addition to three-month payment breaks for both residential and buy-to-let mortgages, the society is also enabling partial payments such as temporary interest-only arrangements.

The five points of the Home Support Package are:

Commitment not to repossess any homes over the next 12 months

No mortgage member will lose the property in which they live if they are in arrears as a result of Covid-19 and work with the society to get their finances back on track. Nationwide says it will protect homes in this way until the end of May 2021.

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Option to change the way people pay their mortgages

Nationwide is offering flexibility for members in meeting their mortgage payments where they can. Assessments will ensure the best outcome, and timeframe, for people’s circumstances. This could include temporarily moving to interest-only payments to minimise the long-term impact on their finances.

New three-month mortgage payment breaks for those still in financial difficulty due to Covid-19

This would mean a total of up to six months’ support to those most needing it, following an assessment to ensure the hardest-hit customers receive additional support. There will be cases where a payment break is not in the best interests of someone’s circumstances. In these cases, Nationwide will suggest alternatives.

Encouraging landlords to pass on payment breaks to tenants

Nationwide is contacting all its buy-to-let landlord customers to let them know that if their tenants require a rent payment break due to the impact of Covid-19, they can have a mortgage payment break on the property.

Greater focus on housing advice and support

Through Nationwide’s longstanding partnership with Shelter, the society will fund more advisers for the charity’s helpline services which provide specialist advice to those with housing, debt and welfare issues.

Nationwide will also support the introduction of new Shelter community engagement officers, who will provide community outreach for those people that struggle to access support.

Coronavirus support page

New payment breaks – partial or full – will be available via the society’s online coronavirus support page from mid-June.

Members already receiving payment support will be contacted prior to it ending and directed online should they require further support due to ongoing financial difficulties as a result of Covid-19. All payment breaks will continue to accrue interest.

Joe Garner, Nationwide’s chief executive, says: “There is a real need to reassure people, particularly those on mortgage payment breaks who are worried what will happen next. At a time when people are concerned about their jobs, bills and health, we want to do everything possible to ensure they don’t worry about having a roof over their heads. As a mutual, founded to help people into a home of their own, this is what building societies have always been about. We hope this additional support will provide extra flexibility to those who most need it, to help get them back on track.”

Nationwide is also asking the government to consider changes to the way housing support is provided, asking that Local Housing Allowance covers the 50th percentile of rents in any given area rather than the current 30th percentile.

This is something Shelter and the Money Advice Trust have also called for, while also working with Government and other organisations to establish a more consistent and customer-focussed approach to debt collection and recoveries.

Written by: Emma Lunn

Source: Your Money

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Nationwide confirms buy-to-let repayment holiday

Nationwide has extended its repayment holidays to cover buy-to-let mortgages.

The Housing Secretary and Prime Minister have both outlined plans to protect landlords and tenants against the impact of the coronavirus pandemic.

Henry Jordan, Nationwide’s director of mortgages, said: “As the UK’s second largest buy-to-let mortgage provider we feel it is important to extend protection to landlords and their tenants during this uncertain period.

“We have extended mortgage payment holidays to include rental properties so that landlords with tenants who are unable to meet rental payments because of coronavirus are protected as much as possible.

“These payment breaks will be able to be arranged via The Mortgage Works – Nationwide’s buy-to-let arm.

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“We would encourage tenants to speak to their landlords if they are impacted or worried about coronavirus to ensure that steps can be taken to support them at this time.”

Housing Secretary Robert Jenrick MP said of the changes: “The government is clear – no renter who has lost income due to coronavirus will be forced out of their home, nor will any landlord face unmanageable debts.

“These are extraordinary times and renters and landlords alike are of course worried about paying their rent and mortgage.

“Which is why we are urgently introducing emergency legislation to protect tenants in social and private accommodation from an eviction process being started.

“These changes will protect all renters and private landlords ensuring everyone gets the support they need at this very difficult time.”

Ben Beadle, chief executive of the National Residential Landlords Association, added: Landlord groups welcomes government support.

“We recognise the exceptional circumstances and we will work collaboratively with government to ensure these measures protect both landlords and tenants.

By Ryan Fowler

Source: Mortgage Introducer

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Nationwide re-enters interest-only mortgage market – exclusive

Nationwide Building Society has re-launched into the interest-only residential mortgage market after an eight-year absence, Mortgage Solutions can exclusively reveal.

Interest-only will be offered through mortgage intermediaries up to a maximum loan to value of 60 per cent.

Borrowers must have minimum equity of £300,000 if they live in London, £250,000 in the South East and £200,000 for those living elsewhere in the UK.

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The exit strategy is restricted to the sale of the main residence only. Part and part mortgages are also allowed, subject to the same criteria.

The society has set these parameters to mitigate the risk of future negative equity and to make sure there is a realistic means of repaying the debt at the end of the mortgage term, Mortgage Solutions understands.

The minimum income requirement is £75,000, or £100,000 for joint income. There is a maximum term of 25 years, or retirement if sooner.

Mortgage Solutions understands this is because Nationwide wants to target the proposition at higher earners who want to use interest-only for flexibility, not because they cannot afford a full repayment mortgage.

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Henry Jordan, Nationwide director of mortgages, said: “As the UK’s second largest lender, it is natural that we continue to look at ways we can support the mortgage market.

“At almost seven per cent, interest-only remains an important part of the market and one we are keen to support by providing access to our standard product range to applicants with good equity and stable income profile.”

The launch is expected within the next two months.

By Samantha Partington

Source: Mortgage Solutions