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Categories:Mortgages

Nationwide caps interest-only lending at 75% LTV

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Nationwide and The Mortgage Works will cap their maximum loan-to-value for residential interest-only mortgages at 75 per cent.

From April 6, all applications which exceed 75 per cent LTV will be considered on a repayment basis only. Currently, the lenders’ maximum LTV for interest-only lending is 85 per cent.

Buy-to-let mortgages from TMW, a subsidiary of Nationwide, are unaffected.

A spokesman says: “What we are doing is bringing our criteria in line with the rest of the market.”

Last month, Lloyds Banking Group restricted interest-only lending to 75 per cent LTV for its Halifax brand.

A number of lenders, including NatWest Intermediary Solutions, Lloyds, Northern Rock, Coventry Building Society and Woolwich, have made changes to their interest-only lending criteria in the past year.

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