Higher LTV limits introduced for interest-only loans and certain foreign nationals
Nationwide Building Society has introduced changes to its mortgage lending criteria, increasing loan-to-value (LTV) limits for interest-only mortgages and expanding borrowing options for foreign nationals without indefinite leave to remain.
Effective today, March 17, the maximum LTV for new interest-only lending has been raised to 75%, up from the previous 60%. All other eligibility requirements, including minimum equity thresholds, remain unchanged.
The building society has also adjusted its criteria for foreign nationals. Borrowers without indefinite leave to remain in the UK can now access loans up to 85% LTV, an increase from 75%. For applications exceeding 75% LTV, minimum income requirements apply: £50,000 per year for sole applicants and £75,000 for joint applicants.
In addition, Nationwide has removed the requirement for these borrowers to contribute at least 25% of the deposit from their own funds, a change that applies across all LTV levels.
The adjustments follow Nationwide’s recent adoption of FICO’s cloud-based platform to enhance its credit decision-making across its mortgage, credit card, personal loan, and current account offerings. The technology aims to improve processing efficiency and reduce reliance on legacy systems. Nationwide now handles around 1.5 million credit decisions each month using the platform.
“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,” said Henry Jordan, director of home at Nationwide Building Society.
“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.”
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