Nationwide has introduced significant changes to its Interest Only mortgage offering, specifically targeting customers earning over £75,000. With branches in Birmingham and nationwide, the building society aims to provide homeowners with more flexible borrowing options to suit their financial needs.
The updated Interest Only lending policy now extends to all buyer types, allowing up to 75% Loan-to-Value (LTV). For those opting for a part Interest Only, part capital repayment mortgage, the LTV can reach up to 85%. Additionally, Nationwide has widened repayment options beyond selling a main residence, now including UK-based savings, investments, pension funds, and other properties as acceptable means of repayment.
Applicants must meet a minimum income threshold of £75,000 for sole applications or £100,000 jointly, although if one applicant earns £75,000, the eligibility criteria are satisfied. The maximum loan amount available through Interest Only lending has increased substantially to £5 million. Moreover, the maximum mortgage term has been extended from 25 to 40 years or until retirement, whichever comes first.
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Carlo Pileggi, Nationwide’s Head of Mortgage Products, commented on the changes: “We are delighted to expand and enhance our Interest Only offering. Interest Only mortgages can be an excellent option for customers who have a suitable repayment plan and seek the flexibility of lower monthly payments. Our updated criteria enable us to support more borrowers responsibly while maintaining robust lending standards.”
Andrew Montlake, CEO of Coreco Mortgage Brokers, praised Nationwide’s approach, saying: “This move demonstrates strong confidence in the broker channel and provides advisers with smart tools to deliver flexibility within secure safeguards. Opening Interest Only mortgages to first-time buyers, alongside clear income thresholds and exclusive access through intermediaries, ensures customers receive vital professional advice during their home-buying journey. These thoughtful enhancements support brokers and responsibly broaden borrower options.”