Nationwide is no longer accepting remortgage applications to fund buy-to-let investment.
Nationwide’s buy-to-let arm, The Mortgage Works, will accept remortgage applications to fund buy-to-let, but not from Nationwide customers.
A spokeswoman for Nationwide says: “As part of Nationwide’s move to a single mortgage processing system, the society is streamlining a small number of specific lending scenarios and reducing manual processes.
“As a result, additional lending to existing Nationwide residential mortgage customers to purchase a second property, where the new property is to be let out, is no longer available.”
Brokers say the lender’s policy on buy-to-let is contradictory.
Perception Finance managing director David Sheppard says: “This policy does seem confusing, given that Nationwide is in the buy-to-let sector through TMW, yet Nationwide itself will not consider such deals.
“It does seem strange that two companies under the same group have different policies towards lending.”
Buy-to-let brokerage The Buy To Let Business managing director Ying Tan says: “This is a rare policy among buy-to-let lenders, most of whom will accept a remortgaged residential loan to fund a deposit. We have had experience of this with Nationwide but few other lenders seem to adopt that policy.”
TBMC managing director Andy Young says: “There have been restrictions on capital-raising through remortgages for business purposes, so this may be the reason for Nationwide’s decision. Even then, this is a confusing policy indeed.”
The move to a new mortgage processing system has already seen Nationwide stop lending to brokers where the borrower is in the armed forces and based overseas.