Nationwide mortgage interest-only LTV change.
Lending criteria for Nationwide mortgage interest-only deals has been changed.
In response to interest-only deal changes by other lenders, Woolwich interest-only products have had their loan to value levels cut from 75 per cent to 50 per cent. The Nationwide previously lowered its interest only LTV to 75 per cent in April 2011 from 85 per cent.
Martyn Dyson who is the head of the Nationwide mortgage division commented saying that because various major UK lenders have restricted their interest only criteria, the Nationwide has had no choice but to follow suit to be in a position to manage interest-only application levels in a sustainable way.
Last month Santander, Lloyds and the Halifax all imposed restrictions on interest only mortgage lending. Recently the FSA voiced concerns over interest only lending, warning that some home-owners with interest-only mortgages may not be able to repay the capital owed at the end of the mortgage term.
Deal Direct feel that interest only restrictions are disappointing but where one lender leads others are bound to follow. Since Santander tightened its interest-only lending criteria those wanting deals have turned on mass to the Nationwide who have no choice but to tighten criteria in order to cope with demand..
Deal Direct can help source highly competitive Nationwide mortgage deals whether fixed, interest only or tracker. Contact our highly skilled advisers today for the very best deals on offer.
