Nationwide offer large mortgage loans

The Nationwide Building Society have made a return to the large loan market and they now offer mortgages above their previous limit of £1 million.

The lender has increased its maximum loan from £1 million up to £2 million. However, they say that it is possible to lend more on a case by case basis and Trinity Financial understands that the unofficial maximum mortgage is £5 million.

Nationwide's lowest rate available up to £2 million is fixed at 3.84% for two years. It is aimed at the more wealthy borrowers able to put down a 50% deposit. For those with a 30% deposit, the two year fixed rate increases to 4.19%.

One of the most competitive mortgages that Nationwide offers up to £2 million is fixed for five years at 4.59%. It is marginally more expensive than the Nationwide's market leading five year deal at 4.39% and it is available for mortgages up to £1 million. There are no arrangement fees attached to their mortgages over £1million.

Aaron Strutt, a broker at Trinity Financial, says: "Nationwide have said that they feel the property market has now settled down sufficiently for them to return to lending larger loans. Prior to the credit crunch they did not have an upper limit on lending.

"Most high-street mortgage lenders have not been particularly keen to offer mortgages over £1million, but things are certainly starting to change. In November, Abbey for Intermediaries launched mortgages with a maximum loan on £2 million and they are available up to 70% loan to value. Halifax have also lowered their two year fixed rates by 0.7% in an effort to keep pace with their competitors."

April 3, 2011