Nationwide is rising the utmost loan-to-value (LTV) accessible for these trying to buy a brand new construct home to 95%.
It may even increase the utmost loan-to-value accessible for functions involving new construct flats to 85 per cent.
And the mutual is rising its provide interval for brand spanking new construct properties from six months to 9 months.
First-time buyers may even have the option to use Nationwide’s Helping Hand mortgage to purchase a brand new construct home, up to the utmost LTV.
What is the Helping Hand mortgage?
The Helping Hand mortgage enhance offers first-time buyers the flexibility to borrow up to six instances earnings at up to 95% loan-to-value. It allows them to borrow a 3rd extra versus Nationwide’s customary excessive LTV lending at 4.5 instances earnings. Helping Hand has supported greater than 57,000 prospects since its launch in 2021.
Mortgage new construct gross sales in 2024 had been round a 3rd decrease than within the final full 12 months of the federal government’s Help to Buy scheme in 2022. Deposit necessities and affordability challenges have performed a significant half on this and Nationwide mentioned that its newest modifications will help the brand new construct sector by tackling them.
Sponsored
Your Mortgage Awards 2024/25: winners revealed
Sponsored by Your Mortgage Awards
Henry Jordan, Nationwide’s director of house, mentioned: “A powerful housebuilding sector drives progress, and because the UK’s greatest constructing society, we’re backing it with a trio of optimistic modifications.
“Not solely are we rising lending up to 95 per cent LTV on new construct properties, however we’re additionally providing first time buyers the flexibility to borrow up to six instances’ earnings by way of our Helping Hand proposition on new builds. In addition, we’re extending our mortgage affords to 9 months – recognising the development delay that may happen with new construct properties and giving higher peace of thoughts to candidates.
“These modifications have the potential to meet the sturdy first-time purchaser demand for brand spanking new builds that has gone unmet for the reason that finish of Help to Buy, while additionally stimulating the development sector to construct extra houses with the arrogance that buyers can get a mortgage on them.”
Adrian MacDiarmid, of Barratt Redrow plc, added: “These newest modifications are a testomony to Nationwide’s dedication to the market, and we imagine will assist extra buyers on this journey. Improving affordability and entry to house possession helps underpin housebuilders’ confidence to put money into order to ship the houses that this nation wants.”
