Nationwide has made two changes to its mortgage criteria as it looks to increase its support for more borrowers, while Clydesdale Bank has reduced rates on some exclusives and professional products.
Nationwide is increasing the maximum loan-to-value (LTV) available for customers requiring new interest only lending to 75%, an increase from the current maximum of 60%.
All other eligibility criteria, including minimum equity requirements, remain the same.
For foreign nationals without indefinite leave to remain in the UK will now be able to borrow up to 85% LTV, a rise from the current level of 75%.
Applications above 75% LTV will be subject to minimum income requirements of £50,000 per annum for sole applicants or £75,000 for joint applicants.
Nationwide is also removing the requirement for these applicants to provide at least 25% of the total deposit from their own resources. This change applies to all applicants.
Nationwide director of home Henry Jordan says: “These latest changes continue our efforts to support as many borrowers as possible, whether it’s purchasing a new property or looking for a new deal on their existing mortgage.”
“The increase in maximum loan-to-value for new Interest Only lending helps more borrowers who prefer the flexibility of interest only. The new maximum loan-to-value available for Foreign Nationals also means that we will be able to support more of those customers with their mortgage needs.”
Elsewhere, Clydesdale Bank has cut two- and five-year residential purchase exclusive rates by up to 0.36%.
The bank has also trimmed two- and five-year residential large loan exclusive rates by up to 0.31%.
In Clydesdale’s professional range, two- and five-year residential newly qualified professional rates will be lowered by up to 0.35%.
In addition, 90% LTV two- and five-year residential professional rates will be reduced by 0.10%.
Clydesdale is also simplifying its discount offset range and will now include:
– For loans up to £1m, 80% LTV two-year discount offset at 5.79% with £999 fee
– For loans above £1m, 80% LTV two-year discount offset at 6.09% with £1,999 fee
The end dates will move to 30 June of the relevant year.
