Nationwide makes £1m-plus lending comeback
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Nationwide is the latest lender to re-enter the £1m-plus mortgage market.
The building society relaunched into the market last week, offering £2m mortgages up to 75% LTV on its no-fee products. It stopped offering £1m-plus mortgages in August 2008.
It will also consider cases above £2m up to 70% LTV but all app-lications over £500,000 will be individually assessed by its underwriting team.
A Nationwide spokesman says it believes the market has settled suffi-ciently for it to return to larger loans.
He says: “Before the credit crunch we did not have an upper limit on mortgages. As the market has stabilised we are in a position to return to more standard lending.”
He adds that large loan applicants may have complex income streams so need to be assessed individually.
In November Abbey for Intermediaries launched two large loan deals up to £2m.
Paul Welch, managing director of Largemortgageloans.com, says the large loans market is starting to go back to where it was before the credit crunch.
He says: “More lenders have an appetite to offer larger loans as we are moving out of the bottom of the credit crunch.”
He adds that private banks usually offer cheaper rates than high street lenders but lend for short terms at higher fees.
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