The building society has announced it will be offering its 90% loan-to-value (LTV) mortgages for first-time buyers from Monday 20 July and there will be no set limit on the number of loans available.

It said the government’s decision to freeze stamp duty on properties up to £500,000 combined with increased activity in the housing market following the lifting of lockdown restrictions had provided an opportunity for it to return to higher LTV lending.

Henry Jordan, director of mortgages at Nationwide Building Society, said: “First-time buyers are vital to breathing life into the housing market and economy. We understand one of the biggest barriers to homeownership is raising a deposit.

“As a building society, owned by our members, we are extremely well placed to look at ways of helping people into a home of their own. While we will continue to monitor the market carefully, we feel it is the right time to enhance our lending, initially to those looking for their first home.

“We welcome the government’s announcement on stamp duty and hope our combined changes create a positive impact on a market that, despite being in relatively good health, is still recovering.”

The building society’s 90% LTV mortgages for first-time buyers will be available direct with Nationwide as well as via brokers.  It said enhanced criteria would apply.

The lender said it would continue to review the market and its products to ensure it was lending responsibly at the same time as helping first-time buyers achieve their housing goals.

Existing members who were moving home would be able to continue to benefit from up to 95% LTV borrowing. For further advances the maximum had increased to 90% LTV.

Property demand

Miles Shipside, commercial director and housing market analyst at Rightmove, added: “The stamp duty holiday is of limited benefit to those first-time buyers who are already exempt from it in many parts of the country, and so Nationwide’s return to 90% loan-to-value is likely to help significantly more for those trying to get their first step on the ladder.

“There’s been record demand for property on Rightmove since the market reopened which has been boosted even further by the stamp duty announcement, all of which should help activity levels over the coming months.”