Mortgage Bonanza: biggest lender yet offers 95% loans

Nationwide Building Society is to become the largest mortgage provider to reintroduce 95 per cent Loan-to-Value home loans without government support. 

These will launch tomorrow.

The new mortgage range will be available to those looking for their first home as well as new customers who are moving.

The new 95 per cent LTV offering will offer rates starting from 3.49 per cent with all products under 4.0 per cent. There will be two and five-year fixed rates as well as a two-year tracker product, all of which will come with various fee options.

The new products, which will not be part of the government’s Mortgage Guarantee Scheme, will be available via mortgage brokers and also directly through Nationwide.

This announcement follows on from the launch last month of the society’s Helping Hand product which enables first-time buyers the option of borrowing up to 5.5 times their income when taking a five or 10-year fixed rate up to 90 per cent LTV.

The 95 per cent LTV range will also mirror the criteria currently applied at 90 per cent, therefore it will only be available to employed borrowers.

The property must also be a house, not an apartment. New build houses are excluded, although Nationwide continues to support the government’s Help to Buy equity loan scheme.

Nationwide’s director of mortgages, Henry Jordan, says: “Deposits and affordability are two of the major issues currently facing first-time buyers, making it harder than ever for them to get their first home. We believe that with the launch of our new market-leading 95 per cent range, along with the recent introduction of Helping Hand, we are playing a leading role in helping to tackle both these issues and giving people even more choice as they look to move into a home of their own.

“As one of the leading lenders to first-time buyers, we feel confident returning to the 95 per cent LTV market without the need for the Mortgage Guarantee Scheme. By not being part of the scheme, we can provide improved value to our members and this is demonstrated by the market-leading rates we’re announcing today.”