Nationwide makes Interest Only mortgage borrowing available for first-time buyers

by Aaron Strutt

Nov 02 2025

• Nationwide's substantial enhancement of Interest Only offering, includes increasing the maximum loan-to-value for part and part to 85%
• Expanding range of repayment plans accepted, including use of savings, investments and pension funds
• Interest Only mortgage borrowing now also available for first-time buyers

Nationwide has enhanced its Interest Only mortgage offering as it aims to give homeowners more flexibility.

Interest Only lending will be extended to all buyer types up to 75 per cent Loan-to-Value (LTV) or up to 85 per cent if it’s a part interest only, part capital repayment application.

Nationwide's Interest Only repayment vehicles:

Nationwide is also expanding repayment options beyond the existing sale of main residence, to include UK-based savings, investments, pension funds and other properties.

Applicants need a minimum eligible income of £75,000 for sole applications and £100,000 for joint cases, unless one applicant earns at least £75,000. The maximum loan amount available through Interest Only is £5 million, with the maximum term increased to 40 years (or retirement, if sooner), from the current 25 years.

Nationwide's Interest Only now available to first-time buyers:

The Interest Only range, which is currently only available through brokers, will also become open to first-time buyers. Nationwide re-entered the residential Interest Only market in 2020 and has been supporting those wanting to move home or remortgage via intermediaries.

Aaron Strutt, product director at Trinity Financial, says: "The lenders have been slowly easing their interest-only mortgage rules for a while, and they have been easing their mortgage affordability rules." 

Does it make sense to take a Nationwide Interest Only mortgage? 

Interest-only is a great option to lower monthly costs, but it makes sense to have a plan in place to work out how to repay the debt at the end of the term. There are lots of lenders offering interest-only now, it often makes sense to take part of the mortgage on interest only and a chunk of it on capital repayment."

Get expert mortgage advice from Trinity Financial

At Trinity Financial, our team of experienced London mortgage brokers specialises in helping borrowers secure the right deal. We work with all major lenders and can guide you through the full application process.

Call Trinity Financial on 020 7016 0790 to secure a first-time buyer mortgage or book a consultation

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