Nationwide has extended its interest only offering to all buyer types up to 75% loan-to-value (LTV) or 85% if it’s a part of interest Only, part capital repayment application.

It is also expanding its repayment options beyond the existing sale of main residence to include UK-based savings, investments, pension funds and other properties.

Applicants need a minimum eligible income of £75,000 for sole applications and £100,000 for joint cases, unless one applicant earns at least £75,000.

The maximum loan amount available through interest only is £5 million, with the maximum term increased to 40 years (or retirement, if sooner), from the current 25 years.

It has also announced that the interest only range, which is currently only available through brokers, will also become open to first-time buyers.

Nationwide head of mortgage products Carlo Pileggi says: “We are delighted to be able to expand and enhance our interest only offering. interest only can be a great option for customers who have a suitable repayment vehicle and want the flexibility provided by lower monthly payments.”

“These changes, along with robust criteria, mean we will be able to increase the support we can provide borrowers looking for more flexibility, while ensuring Nationwide continues to lend responsibly.”

Also commenting, Coreco Mortgage Brokers chief executive Andrew Montlake adds: “Nationwide’s move is a real vote of confidence in the broker channel and gives advisers more tools to deliver genuine flexibility within robust safeguards.”

“Opening interest only to first-time buyers, while maintaining clear income thresholds of £75,000 sole or £100,000 joint, and keeping the proposition exclusively available via intermediaries, means customers will access the professional advice that is crucial, especially in the initial stages of their home-buying journey.”