Nationwide re-enters restricted resale market

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Nationwide is re-entering the restricted resale market and will make tweaks to its broker purchase and remortgage terms from next week.

The lender left the restricted resale market around two years ago.

Properties with restrictive covenants on title deeds, which dictate who the home can be sold to, will now be accepted.

The lender will also provide porting online for existing customers through intermediaries.

A Nationwide spokeswoman says: “Nationwide is planning to re-enter into restricted resale lending via intermediaries from next week, and Nationwide’s new build range can be accessed on a restricted resale basis.”

Nationwide will also introduce enhanced rates through intermediaries with Genuine Bargain Price lending, which applies to borrowers buying properties knowingly below market value.

This option bases the maximum LTV on the current market value of the property. This is restricted to 90 per cent on standard property, with restrictions that apply to new build properties.

In all cases, the discount must be a gift, not a loan, and there must be no conditions attached to the gift.

The lender will also give brokers access to unencumbered remortgages.