Nationwide has expanded its interest-only offer to all types of buyers up to 75% loan-to-value (LTV) or 85% if it is interest only, a partial repayment of capital.
It is also expanding its repayment options, beyond existing primary residence sales, to UK savings, investments, pension funds and other properties.
Applicants need a minimum qualifying income of £75,000 for single applications and £100,000 for joint cases, unless one applicant earns at least £75,000.
The maximum loan amount available through interest only will be £5 million, with the maximum term increasing from the current 25 years to 40 years (or retirement, if earlier).
It has also announced that its interest-only range, currently only available through brokers, will also be open to first-time buyers.
National head of mortgage products Carlo Pileggi said: “We are pleased to expand and enhance our interest-only offering. Interest-only can be a great option for customers who have a suitable repayment tool in place and want the flexibility offered by lower monthly payments.”
“These changes, together with robust criteria, ensure we can increase the support we can offer borrowers looking for more flexibility, while ensuring Nationwide continues to lend responsibly.”
Commenting, Andrew Montlake, CEO of Coreco Mortgage Brokers, added: “Nationwide’s move is a real vote of confidence in the broker channel and gives advisers more tools to deliver real flexibility within robust safeguards.”
“By opening up interest to first-time buyers only, while maintaining clear income thresholds of £75,000 alone or £100,000 jointly, and keeping the offer available exclusively through intermediaries, customers will have access to the professional advice that is crucial, especially at the early stages of their home buying journey.”