Nationwide is increasing rates on its 85 per cent loan-to-value deals by up to 20 basis points tomorrow.

The lender emailed brokers today to warn that both fixed and tracker rates for borrowers with a 15 per cent deposit would be increasing tomorrow.

Brokers wishing to make use of current rates must have applications submitted by 5pm today.

Last week the lender returned to offering mortgages at up to 90 per cent LTV.

However, lending to borrowers with a deposit of less than 10 per cent is subject to a number of restrictions.

Borrowers who are currently on furlough and those looking to buy flats or new-build properties will not qualify for the 90 per cent LTV products.