Nationwide makes it easier for people to disable mortgages on new -build homes by making a ‘trio of changes’ to its products.
The mortgage provider increases the share that lends new-build homes to 95% loan-to-value (LTV), which means that borrowers only need a down payment of 5% to be eligible for a new build lending. This option is also extended to first buyers.
For those who took their first step on the real estate ladder, Nationwide said that potential homeowners can also use the ‘helping hand’ initiative to make new build purchases to the maximum LTV.
Manuals wants to help first buyers by letting them borrowed a little more it offers them a loan for six times their income, in contrast to the usual 4.5 times income that is standard with lenders.
According to Nationwide, the sale of Mortgage Nieuwe Build in 2024 was about a third lower than in the last full year of the government’s help to buy in 2022.
It said that the deposit requirements and the challenges for affordability have played an important role in this and the latest changes from Nationwide will support the new Build sector by tackling them.
Nationwide said that it would also increase the maximum loan-to-value loan that is available for requests with new Build flats up to 85%.
And it will increase its offering period for new build -needs from six months to nine months. Although most new Build purchases are completed within a period of six months, this change is intended to offer customers and brokers more certainty and flexibility during the construction process. The longer offer period reduces the risk of applying the mortgage in the event that the property takes longer to complete.
Henry Jordan, director of Nationwide, said: “A strong housing sector stimulates growth, and as the largest construction company in the UK we support it with a trio of positive changes.”
He added: “These changes have the potential to meet the strong demand from the first buyer to new builds that have been buying since the end of the help, while also encouraging the construction sector to build more houses with the confidence that buyers can get a mortgage.”
Ceri Pearce, British sales and marketing director, Taylor Wimpey said: “The latest mortgage improvements from Nationwide are a welcome step at a time when the desire for home ownership is strong, but the affordability continues to challenge some customers.
“The increase in the maximum loan to value on new -build houses to 95% will make it easier for buyers to protect a mortgage with a smaller down payment, and the extension of mortgage offers up to nine months will give borrowers more certainty and flexibility during the construction process.
“These changes reflect a strong dedication to supporting the housing market and responding to the underlying demand for new houses.”