Nationwide want deposits of at least 10%
April 29, 2008
Nationwide, the UK’s second biggest mortgage lender are asking for deposits of at least 10 per cent of the property’s value from new customers on all but two of its mortgage deals.
The controlled new criteria also sees a variable rate deal for customers requiring a 25 per cent deposit. The lender has also cut its maximum loan amount from £1m to £500,000 for all new customers.
Nationwide are one of an increasing number of banks and lenders that are tightening their lending criteria.
Matthew Carter, Nationwide’s divisional director for mortgages said “These changes will allow us to maintain control of the volume of business the society is attracting, while enabling us to continue offering a full range of mortgages to our existing members in a controlled and prudent way.”
So called 125% mortgage offers were withdrawn, quickly followed by 110% and 100% mortgages, in recent months.
“The biggest struggle now is not being able to afford a mortgage - it is being able to get one. Availability is the biggest hurdle despite all the Government efforts to get lenders lending” said Sean Gardner, of moneyexpert.com.
“First time buyers and people renegotiating their mortgage for the first time will be worst affected. When disposable income is already at breaking point for many it is frankly impossible to see how those with limited savings will find a way to get a foothold on the property ladder” he added.
www.nationwide.co.uk
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