"The ability for lenders to offer lower deposit mortgages to first-time buyers is critical to helping the market recover more quickly."
The Society says last week's stamp duty announcement, combined with a more active housing market following the lifting of lockdown restrictions, has provided an opportunity for it to return to higher LTV lending.
The Society’s 90% LTV mortgages for first-time buyers will be available via brokers as well as direct with Nationwide.
Henry Jordan, director of mortgages at Nationwide, said: “First-time buyers are vital to breathing life into the housing market and economy. We understand one of the biggest barriers to homeownership is raising a deposit. As a building society, owned by our members, we are extremely well placed to look at ways of helping people into a home of their own. While we will continue to monitor the market carefully, we feel it is the right time to enhance our lending, initially to those looking for their first home. We welcome the government’s announcement on stamp duty and hope our combined changes create a positive impact on a market that, despite being in relatively good health, is still recovering.”
Miles Shipside, commercial director at Rightmove, added: “The ability for lenders to offer lower deposit mortgages to first-time buyers is critical to helping the market recover more quickly. The stamp duty holiday is of limited benefit to those first-time buyers who are already exempt from it in many parts of the country, and so Nationwide’s return to 90% loan-to-value is likely to help significantly more for those trying to get their first step on the ladder. There’s been record demand for property on Rightmove since the market reopened which has been boosted even further by the stamp duty announcement, all of which should help activity levels over the coming months.”
