Lender Atom bank also raises LTI and LTV limits
Nationwide Building Society has raised the maximum loan-to-value (LTV) ratio for new build houses from 85% to 90%, offering increased support for the housebuilding sector.
The change, which allows prospective buyers to secure a Nationwide mortgage for a new build property with a 10% deposit, aligns with the lender’s ongoing commitment to making homeownership more accessible and supporting the UK government’s housing goals.
“As a mutual, we are committed to creating a vibrant and growing housing market and believe this change will demonstrate that we are fully behind the government’s housing ambitions,” said Ian Andrew (pictured left), director of intermediary relationships at Nationwide Building Society.
“By increasing our maximum LTV on lending for new build houses, we hope to help even more people into their first home or move onwards to their next.”
In a similar development, digital lender Atom bank has raised its maximum loan-to-income (LTI) ratios and LTV limits to better support prospective homeowners, particularly in London and the South East.
The UK’s first app-only bank will now lend up to six times the income of employed applicants earning £75,000 or more annually, for loans with an LTV of 90% or less. For loans exceeding 90% LTV, the maximum LTI has been increased to 5.5 times the applicant’s income.
The maximum LTV for existing flats and new build houses has also been increased from 90% to 95%, while new build flats now have a maximum LTV of 90%, up from 80%.
“First-time buyers are the lifeblood of the housing market – without them, it doesn’t function properly,” said Richard Harrison (pictured right), head of mortgages at Atom bank. “Yet would-be buyers face two significant challenges today, first in saving the initial deposit and then meeting affordability requirements, which can restrict the sums they can borrow.
“These changes are aimed at addressing those challenges, and mean we can support far more prospective buyers, both first-time buyers and those looking to move up the ladder. Higher LTI caps are an effective way to lend responsibly to those who can truly afford the repayments, not just now but in the years to come, while the new LTV caps for properties in the South East will open up properties in this particularly pricey region to more buyers.”
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