Nationwide has announced it will no longer offer interest-only mortgages to new or additional borrowers.

The change takes effect from Thursday 11th October.

A statement which went out to mortgage brokers read: “We will no longer offer interest-only mortgages for any new or additional borrowing.

“Existing customers may retain their interest-only mortgage, but cannot increase their borrowing on that basis.

There are no other changes to criteria or products.”

A spokesperson for Nationwide told Mortgage Solutions: “Nationwide has seen a sharp decline in lending on interest-only products in recent times and currently only 3% of our new lending is interest-only.

“This will not affect any existing customers as those already on interest-only will be able to continue on an interest-only basis, only existing borrowers seeking to increase their loan will be moved onto a repayment product.”

Comments are closed.