First-time buyers could face additional difficulty getting onto the property ladder following yet another restriction introduced by a major mortgage lender.
Nationwide has announced it is capping any gift towards a deposit at 25 per cent of the deposit amount for lending above 85 per cent LTV, while also limiting those products to a maximum term of 25 years.
Aaron Strutt of Trinity Financial told FTAdviser.com the larger banks and building societies had been under pressure to return to the low deposit market but were worried about the economy at the same time.
He said: “Nationwide wants borrowers with low deposits to be more self-sufficient and less reliant on their parents. More of the lenders are starting to come back to the 10 per cent deposit market but the acceptance criteria is tougher than normal.”