Nationwide cuts interest-only LTV to 50%

Tuesday, 20th March, 2012

Nationwide Building Society is slashing its interest-only LTV (loan to value) for residential lending from 75% to 50%. The society says the change is in response to changes made by other lenders and takes effect tomorrow. Nationwide head of mortgages Martyn Dyson says: “A number of major lenders have recently restricted their criteria for interest-only mortgages and Nationwide needs to be able to manage application levels in a prudent and sustainable manner.  “The group is therefore amending its policy to a maximum of 50% LTV.” Nationwide lowered its LTV for interest-only to 75% in April 2011, it previously offered 85% LTV.