Nationwide enhances Interest Only offering

03 November 2025

• Substantial enhancement of Interest Only offering, including increasing max LTV for part and part to 85%
• Expanded range of repayment plans accepted, including use of savings, investments and pension funds
• Interest Only borrowing now also available for first-time buyers

Nationwide is today (Monday 3 November) enhancing its Interest Only 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.

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 income1 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.

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.

Carlo Pileggi, Nationwide’s Head of Mortgage Products, said:

“We are delighted to be able to expand and enhance our Interest Only offering. Interest Only can be a great option for customers who have a suitable repayment vehicle and want the flexibility provided by lower monthly payments.

“These changes, along with robust criteria, mean we will be able to increase the support we can provide borrowers looking for more flexibility, while ensuring Nationwide continues to lend responsibly. As the country’s second largest lender, it is natural that we continue to look at the products we offer, including those we make available through brokers, to ensure we can help them meet as many of their clients’ needs as possible.”

Andrew Montlake, CEO of Coreco Mortgage Brokers, said:

“Nationwide’s move is a real vote of confidence in the broker channel and gives advisers more tools to deliver genuine flexibility within robust safeguards. Opening interest only to first-time buyers, while maintaining clear income thresholds of £75,000 sole or £100,000 joint, and keeping the proposition exclusively available via intermediaries, means customers will access the professional advice that is crucial, especially in the initial stages of their home-buying journey.

“These are thoughtful, positive changes that support brokers and broaden choice for borrowers in a responsible way.”