Nationwide has revealed it will now increase its maximum loan to value for remortgages (LTV) from 85% to 90% for all customers remortgaging from other lenders. The two year 90% LTV remortgage products now available will carry either a rate of 2.39% with a £999 fee or a rate of 2.79% with no additional fee.
There are also three-year options available, which will carry a rate of 2.74%, or 3.19% for five year fixed products with a £999 fee (or at 3.39% with no fee).
Remortgage customers can also now benefit from free standard valuations from the lender and a choice of either free standard legal work or £250 cashback. This follows the recent introduction of Nationwide’s 95% LTV tracker rate product to go alongside its existing 95% fixed rate offers for customers purchasing a new home.
Existing Nationwide mortgage customers switching at the end of their current deal or moving home can also access the lender’s range of 95% LTV products.
The lender’s increase in its maximum LTV is thought to be in response to increasing demand from customers looking to remortgage, yet still being able to benefit from competitive rates. The increase is also set to be beneficial for first time buyers with smaller deposits, searching for a lower rate at the end of their current term.
Elsewhere, Virgin Money has also updated its residential and buy to let mortgage criteria. Changes are set to mainly affect residential borrowers lending into retirement, having now amended its policy to allow more customers to use their current income for affordability.
If a customer is 10 or more years away from their expected retirement age, they can now benefit from basing affordability on their current income, as long as they can provide evidence that they are making provisions into a pension. The lender’s maximum age policy remains at 75 years for the end of term.
Virgin Money has also relaxed its lending policy on the maximum number of storeys allowed for flats and maisonettes across the UK to 10 or unlimited in certain areas of London. The maximum LTV for these properties will be restricted to 80%.