View more on these topics

Nationwide for Intermediaries to introduce new lending assessments

Nationwide for Intermediaries has altered the way it calculates lending assessments by replacing the current income multiplier element of its assessment with a new calculation it says is more tailored to a client’s individual circumstances.

The new system, which will be introduced from March 4, will take net disposable income, apply further deductions for household costs, and also apply a calculation that takes into account other factors such as LTV.

It will also scrap payment holidays and borrow back features on new Nationwide products. However, customers will still be able to overpay and underpay, extend the mortgage term to reduce payments if their repayment type is capital and interest and convert to interest only.

The lender is also renaming reservation fee to product fee, which, they say, is designed to help distinguish the fees when using product-sourcing systems.

A spokesman for Nationwide says: “We have always been a cautious lender where we assess what an individual can afford to repay and we are continuing to be prudent. Our calculation now takes an even more personalised approach to assessing the amount we will lend.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm