A 15% deposit.. or no mortgage

BRITAIN’S biggest building society dealt another blow to first-time home buyers yesterday by announcing it will now only lend to borrowers with at least a 15 per cent deposit.

Nationwide scrapped its mortgage range for those with a 10 per cent deposit amid concerns about falling house prices. Before the pandemic, the lender offered mortgages with a deposit of just 5 per cent.

Nationwide said the decision was ‘prudent’. It added that it was concerned about new owners falling into negative equity – where they owe more money than their property is worth.

Existing customers who took out loans with smaller deposits will not be affected. It comes as the number of mortgages available for first-timers has plummeted in recent months.