Nationwide has pushed up mortgage rates for borrowers with cash deposits of 25% or less, in the latest sign that lenders are distancing themselves from riskier loans. Financial Times, The Times, Daily Telegraph
The building society said new customers would only be able to secure its most competitive deals if they were borrowing a maximum of 75% of a property’s value. Nationwide is one of a number of lenders that have become increasingly reluctant to lend higher loan-to-values, especially as house price growth starts to stall.
'It is a case of the less you need to borrow, the better deal you are going to be offered by lenders now,' said Sean Gardner, chief executive of MoneyExpert.com.