Interest rates mortgage

Nationwide brings back interest-only mortgages via brokers

The last time Nationwide Building Society offered an interest-only mortgage was eight years ago. But the lender is now reintroducing them for borrowers looking for more mortgage flexibility.

Interest-only mortgages currently account for approximately 7% of the mortgage market. However, interested borrowers will need to meet some stringent conditions to qualify.

For the new Nationwide interest-only mortgage products, there are criteria that apply. One is that applicants need a minimum equity of £200,000, unless they are in the south-east where £250,000 is required. In London, this increases to £300,000.

Strict customer profile

The maximum loan to value (LTV) ratio will be 60%, and there will be a minimum income requirement of £75,000 for individual applicants or £100,000 for joint income applications. Plus, a minimum mortgage term of 25 years or retirement if sooner is a pre-requisite. Further to this, customers will only be able to access the interest-only products through mortgage brokers.

Nationwide will also be offering “part and part” mortgages. This means borrowers will be permitted a middle-ground between repayment and interest-only mortgages based on the same criteria.

Supporting good applicants

Henry Jordan, Nationwide director of mortgages, said: “As the UK’s second-largest lender, it is natural that we continue to look at ways we can support the mortgage market.

“At almost 7%, interest-only remains an important part of the market and one we are keen to support by providing access to our standard product range to applicants with good equity and stable income profile.”

According to Mortgage Solutions, Nationwide is targeting the proposition at higher earners looking for mortgage flexibility. This means it does not apply to borrowers who cannot afford a full repayment mortgage.

The risk of future negative equity is a concern for all lenders. Nationwide’s parameters for this mortgage and the requirement of a realistic means of repaying the debt should reduce their exposure.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT