Investment Property News - Bueno Investments Limited

A major mortgage lender has raised the size of the deposit it demands from new borrowers to at least 10%.

Nationwide Building Society is reducing its maximum loan to value ratio to 90% on all of its products for new borrowers, except its three-year fixed and its three-year tracker deals.

New customers wanting to take out a standard variable deal now need a deposit of at least 25%, while the maximum amount the group will advance on any of its mortgages to new borrowers is capped at £500,000.

Nationwide described the move, which takes effect from May 1, as part of its "ongoing approach of managing the business in a prudent and sustainable way".

It joins a number of other lenders who have limited lending to people with only a 5% deposit, with Abbey only offering 95% mortgages on its five-year fixed and its standard variable rates.

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