Nationwide Building Society is increasing its range of 90 per cent LTV products.

From the second week of December the building society will make its 90 per cent LTV loans available for house purchase, and for existing mortgage members looking to move home. Previously loans at this rate had only been available to first-time buyers. 

At the same time it will also remove some of the restrictive temporary lending criteria placed on first-time buyers. It will again for example allow fully gifted deposits at 90 per cent LTV.

Nationwide said it hoped this move would further support the housing market at what remains a difficult and uncertain time for many. 

The higher loan to value loans will be available up to £500,000 over a maximum 25-year term, with rates aligned with those on offer to first-time buyers at 90 per cent LTV.

This includes 3.49 per cent for a two-year fixed mortgage with a product fee of £999. 

Nationwide has been offering these higher loan to value loans since July. Initially it said this lending would be on a temporary basis, with more restrictive criteria in place. However it said it has now created more capacity to expand its lending at this level.

Nationwide says that in the six months to 30 September 2020, it helped 21,000 first-time homeowners buy their own home – equivalent to one in six of all first-time buyers. 

All of the society’s 90 per cent LTV mortgages are available direct or via brokers.

Nationwide director of mortgages Henry Jordan says: “As a mutual we aim to balance supporting first-time buyers into a home of their own with the need to lend responsibly.  

“Given the uncertainty created by the pandemic, our re-entry into 90 per cent LTV lending back in July was deliberately cautious and included enhanced criteria.

“Four months on, we are increasingly confident in our approach and are able to expand our support for the market to include home movers, whilst also removing some of the temporary criteria for first-time buyers, making it easier for parents to help them take their first step onto the housing ladder.”