Nationwide Building Society will return to lending at 95% LTV on non-new build flats.

The society reduced its maximum LTV for flats (excluding new-builds) to 85% at the height of the pandemic due to concerns about the economic conditions at the time.

The change announced and effective from today will be beneficial for first-time buyers, with 25% purchasing a flat in 2022. This compares with less than 10% of home movers.

According to Nationwide, it will also be helpful those who live in large urban areas like London, where last year over 35% of first-time buyer purchases were flats.

Nationwide already lends at 95 per cent LTV for new-build flats via the Deposit Unlock scheme.

Nationwide Building Society director of home Henry Jordan comments: “With flats representing one in four purchases for first-time buyers we hope this decision gives more options for those looking to get onto the property ladder.”