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Housing

Nationwide Increases Mortgage Lending for New Build Homes

Strategic Insights

— 1 min read

Nationwide, the UK's biggest building society, is increasing its mortgage lending for new build homes by allowing borrowers to access loans of up to 95% loan-to-value (LTV). This change aims to tackle affordability challenges and deposit requirements that have hindered the new build sector. The move is part of a trio of positive changes, including increasing the maximum LTV for new build flats to 85% and extending the offer period for new build properties from six to nine months. The changes are expected to meet strong demand for new builds among first-time buyers and stimulate the construction sector.

Key Takeaways:

  • Nationwide is increasing its mortgage lending for new build homes by allowing borrowers to access loans of up to 95% LTV.
  • The change aims to tackle affordability challenges and deposit requirements that have hindered the new build sector.
  • Nationwide is also increasing the maximum LTV for new build flats to 85% and extending the offer period for new build properties from six to nine months.
  • The longer offer period is designed to reduce the risk of needing to reapply for a mortgage if the property takes longer to complete.
  • The changes are expected to meet strong demand for new builds among first-time buyers and stimulate the construction sector.
  • Henry Jordan, Nationwide's director of home, stated that the changes have the potential to meet the strong first-time buyer demand for new builds that has gone unmet since the end of Help to Buy.
  • Ceri Pearce, UK sales and marketing director at Taylor Wimpey, welcomed the changes, saying they will make it easier for buyers to secure a mortgage with a smaller deposit and give them greater certainty and flexibility during the construction process.

Statistics:

  • Nationwide's mortgage new build sales in 2024 were around a third lower than in the last full year of the government's Help to Buy scheme in 2022.

Sources:

  • Nationwide (@AskNationwide) on Twitter.
  • WhatMORTGAGE.
  • Taylor Wimpey.
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