Nationwide Launches Range Of 90 Per Cent Mortgage
Nationwide Building Society has introduced a new range of 90 per cent loan-to-value (LTV) deals to their existing mortgage products.
The 90 per cent mortgages – which require only a ten per cent deposit – were launched on 30 October, and offer fixed rates starting at 5.98 per cent for two years with a £495 fee.
This would result in monthly repayments of £965 on a £150,000 loan over 25 years, on a repayment basis.
Nationwide’s other mortgage options for those with only a ten per cent deposit are a two-year fix with no fee, set at 6.18 per cent; a three-year fix at 6.03 per cent; a five-year fix at 6.73 per cent; and a two-year tracker at 4.63 per cent.
Nationwide is restricting the 90 per cent deals to those with its FlexAccount as their main current account, with a further stipulation that customers must pay at least £750 a month into the account.
This, they say, is partly to do with the Government’s concern that banks and building societies should have a more thorough understanding of their borrowers’ finances.
Further details of Nationwide’s 90 per cent mortgages are available only through its branch network, not via brokers or over the phone or online.
Moneyfacts: Two-Thirds of Mortgages Still Require 25 Per Cent Deposits
A report from Moneyfacts says the last month has seen an increase in the availability of higher loan-to-value (LTV) mortgages, but the majority still require borrowers to put down a deposit of 25 per cent. Key findings were:
- The number of mortgages requiring a minimum 15 per cent deposit has risen from 189 in the past month to 226, the highest number for more than a year.
- At the same time, however, the number of mortgages requiring a 20 per cent down-payment has fallen from 136 to 117.
- And almost two-thirds of mortgage products (66 per cent) still need at least a 25 per cent deposit.
Regarding the higher availability of 85 per cent mortgages, Darren Cook of Moneyfacts, says: “It is encouraging to see that maximum 85 per cent loan-to-value, or 15 per cent deposit, requirements have increased in numbers this month.
“This might be an indication that some mortgage providers have kept an eye on house prices, regained some confidence and realigned their outlook towards risk.”