Nationwide withdraws mortgages for small deposit holders
This is so it can focus on existing members and process ongoing applications amid the pandemic, the mutual said.
The change affects remortgages, first-time buyer and new house purchase customers making online applications or via brokers. The 75% LTV threshold also applies to the society’s buy-to-let arm The Mortgage Works (TMW).
Nationwide confirms applications and appointments can still be held over the phone and Nationwide Now – the society’s video service in branch.
Existing borrowers who are moving home, extending borrowing amounts or switching products will not be impacted.
Further, applications where a product has already been retracted will continue to progress and Nationwide will continue to offer mortgages at 75% LTV and below.
This follows on from Nationwide and TMW announcing that existing mortgage offers would be given a three-month extension where the offer is within 30 days of expiry and introducing measures to make use of alternative valuation methods.
Sara Bennison, chief marketing officer at Nationwide, said: “We need to maintain the levels of service expected of us in the face of an extremely high number of enquiries about existing mortgages and ongoing applications.
“We continue to monitor for any updates to government advice and, in this ever-evolving situation, we ask members and brokers to bear with us and thank them for their patience.”