Nationwide Building Society (NBS) has announced that it will offer a new range of large home loans to UK borrowers, starting 30 March 2011.
The lender has revealed that it will raise its maximum loan range from £1 million to £2 million, in a bid to target the £1 million-plus mortgage market.
The large mortgage loan range will be offered for up to 75 percent of a property’s value, although an NBS official confirmed that it will allow higher loans of up to 70 percent loan-to-value (LTV), on a bespoke basis.
However, these larger loans will only be offered for Nationwide’s current range of no-fee products, available direct and through brokers.
This means that the lender’s best buy five-year fixed rate of 4.39 percent, along with a £900 fee, will not be offered to borrowers seeking larger loans. Instead, such borrowers can access its five-year fix at 4.59 percent, available up to 70 percent LTV.
“We believe the market has settled sufficiently for us to return to lending larger loans,” an NBS official said.
“Prior to the credit crunch we did not have an upper limit on our mortgages. As the market has now stabilised we are in a position to return to more ‘standard’ lending arrangements.”