The change is set to benefit first-time buyers
Nationwide Building Society has announced that it is returning to lending at 95% loan-to-value (LTV) on non-new build flats, starting today, June 9.
According to the lender, the change is expected to benefit first-time buyers and those who live in large urban areas. The UK Finance Regulated Mortgage Survey found that 25% of first-time buyers purchased a flat in 2022, compared with less than 10% of home movers.
Nationwide reduced its maximum LTV for flats excluding new-builds to 85% at the height of the COVID-19 pandemic due to economic concerns at the time. It already lends at 95% LTV for new-build flats via the Deposit Unlock scheme.
“We are pleased to be able to return to higher loan-to-value lending on flats – a move that predominantly supports the first-time buyer market,” Henry Jordan, director of home at Nationwide Building Society, said. “With flats representing one in four purchases for first-time buyers, we hope this decision gives more options for those looking to get onto the property ladder.”
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