Nationwide is the UK’s second largest building society, they will soon come back into the interest-only mortgage market – however only high earners will be eligible. It has been at least eight years since Nationwide offered interest-only mortgages, however, the building society has confirmed that it plans to relaunch them again. Interest-only mortgages, usually allow homeowners to repay just the interest owed each month, and not the capital which they borrowed.
This must be paid back at the end of the mortgage term, a repayment vehicle would be needed to run along side which could include savings, investments or the sale of the property. Available through brokers once it is re-introduced, Nationwide’s interest-only deals would be available through mortgage brokers to those who have a minimum income of £75,000 or £100,000 for joint income. The building society is hoping to target high earners who want to use an interest-only mortgage to provide them with greater flexibility and not because they need to make their mortgage more affordable.