Nationwide pledges to help first-time buyers with 90% LTV range

Nationwide is launching a selection of 90% loan-to-value (LTV) two, three and 5-year fixed-rate as well as 2-year tracker products for first-time buyers with rates starting from 2.49%. 

The building society said there will be no set limit on the number of products available at a time when some lenders have been forced to restrict borrowing in the 90% LTV range due to heavy demand.

Henry Jordan, director of mortgages at Nationwide Building Society, said: “Our return to the 90% market is aimed at helping people into a home of their own, but it is also important to give first-time buyers a choice to suit their personal situation.

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“That is why we are launching a range of fixed and tracker rate mortgages with different term and fee options.

“Given the competitive rates on offer, we expect these to prove extremely popular when they launch on Monday.

“By not having a set limit on the number of mortgages available, we aim to help as many first-time buyers get a foot on the ladder as we can at a time many may feel like they have been frozen out.”

However Nationwide will be increasing rates on its 85% LTV range by up to 0.45%, while rates on the Society’s shared equity range at 60% and 75% LTV range will increase by 0.15%.

Jordan added: “These rate changes reflect a continually evolving market but will also ensure that the Society can support all mortgage applications and maintain the levels of service expected of us, especially once our new 90% LTV range launches on Monday.”