Home » Nationwide Clamps Down on Interest-Only Mortgages
The Nationwide building society has become the latest lender to crack down on interest-only mortgages, insisting that any new residential borrowers must have at least 50 per cent equity in their property if they wish to avoid capital repayments on their home loan. Previously, Nationwide was prepared to arrange interest-only mortgages with borrowers who had 25 per cent equity in their homes or a 25 per cent deposit, but it said this week that it was essential for it to “manage application levels” after its competitors announced they were tightening the criteria for interest-only mortgages. The change will come into effect on 21 March and will also apply to the other building societies coming under the aegis of Nationwide, the Cheshire, Derbyshire and Dunfermline. Buy-to-let mortgages being arranged through The Mortgage Works will not be affected. Nationwide stressed that existing mortgage-holders with the building society will also not be affected by the change, although they also have the choice of switching to another form of loan or moving home to a similarly priced property. On the same day, the Coventry Building Society said that it was raising the minimum equity level on its interest-only mortgages to 50 per cent from 22 March. The move follows last month’s announcement by banking giant Santander that it was restricting its interest-only mortgages a decision which was soon echoed by the Lloyds banking group, which includes major lender Halifax. Speculation is now rife as to whether other lenders, such as HSBC and Woolwich, will now follow suit.
Published on 22 July 2020
SHARE
About the author:
The Mortgage Broker
The Mortgage Broker is an award-winning UK mortgage and protection specialist with decades of experience helping thousands of customers secure suitable and affordable mortgage solutions. Regulated by the Financial Conduct Authority, all advisers are minimum CeMAP-qualified and known for delivering clear, transparent, and expert guidance whether helping first-time buyers, home movers, remortgage clients or those with complex or adverse-credit needs. Recognised as a finalist at the Mortgage Strategy Awards 2025, The Mortgage Broker combines digital speed with human trust, offering access to over 130 lenders and more than 25,000 products. The company’s app, secure client portal and easy-to-use tools make it simple for customers to compare rates, track progress, and stay informed from start to finish.
With more than 2,500 verified five-star Trustpilot reviews, clients consistently praise the firm’s professionalism, value for money, and personal service. Reviews highlight the team’s ability to explain complex mortgage and protection topics in plain English, providing support throughout the entire journey. The company’s reputation for knowledge, empathy, and reliability has made it one of the UK’s most trusted brokers, delivering advice that is honest, transparent, and tailored to each individual’s financial goals.
Every part of The Mortgage Broker’s service reflects Google’s E-E-A-T principles: Experience, Expertise, Authoritativeness, and Trustworthiness. Its team has decades of hands-on industry knowledge, proven technical expertise, and national recognition supported by awards, media features, and verified customer feedback. As an FCA-regulated firm with a 5-star reputation, The Mortgage Broker stands for no-nonsense advice, common-sense lending, and exceptional customer outcomes — setting the standard for trusted mortgage advice across the UK.
Written by Jodi Spreadbury, Senior Mortgage and Protection Broker, Self-Employed Mortgages Expert, The Mortgage Broker Book a free appointment with Jodi, here. If you are self-employed, you have likely heard this: “Mortgages are harder for people like you.” Sometimes that’s an excuse, sometimes it’s true but for the wrong reasons. Here’s the reality: There is … Continue reading “Self-Employed Mortgages: Harder to Get, Fact or Myth”
Written by Sarah Mascot, Mortgage Advisor, Debt Consolidation Expert, The Mortgage Broker Book a free appointment with Sarah, here. If you are juggling credit cards, loans and an overdraft that never seems to shrink, it can feel like you are constantly firefighting. You are not alone. Pepper Money’s Specialist Lending Study 2025-2026 found that households … Continue reading “Debt Consolidation Remortgage: A Straight-Talking Guide”
Written by Harrison Andrews, Mortgage and Protection Advisor, Buy to Let Expert, The Mortgage Broker Book a free appointment with Harrison, here. What Is Buy to Let? Buy to Let is exactly what it sounds like: purchasing a property with the intention of letting it out rather than living in it yourself. The return comes … Continue reading “What adds value to Buy to Let properties?”
View all posts by The Mortgage Broker 
