Nationwide launches interest-only mortgages
Nationwide is offering interest-only deals through brokers only, as it re-enters the market after an eight year absence.
The lender is now accepting remortgage applications up to a maximum loan to value (LTV) of 60%.
Borrowers require a minimum equity of £300,000 in London, £250,000 in the South East and £200,000 across the rest of the UK.
Rates are the same as capital repayment, staring from 1.29%.
Repayment will be restricted to the sale of the main residence only, with part interest-only and part capital repayment allowed following the same criteria.
Borrowers will also need a minimum income of £75,000 or £100,000 for joint applications.
The launch comes after our sister title, Mortgage Solutions, last month revealed Nationwide was planning to re-enter the market.
Henry Jordan, Nationwide’s director of mortgages, said: “As the UK’s second largest lender, it is natural that we continue to look at ways we can support the mortgage market.
“At almost seven per cent, interest-only remains an important part of the market, which is why we are launching this new product, initially via brokers.
“During these unprecedented times, it is important to continue offering a variety of options and flexibility to homeowners and, by adding interest-only, we are providing access to our standard product range to applicants with good equity.”
Greg Cunnington, director of lender relationships and new homes at Alexander Hall, added: “It is really positive to see Nationwide returning to the interest-only market especially when clients, now more than ever, need the widest range of available options.”