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