Nationwide offers interest only mortgages to first-time buyers

Nationwide Building Society is now offering interest-only mortgages to a broader range of customers, including first-time buyers. Previously available to select customers, these interest-only deals now require a deposit of 25 percent, or a lower 15 percent for a partial interest-only, partial repayment option. With an interest-only mortgage, borrowers only pay the interest each month, leaving the loan principal unchanged. This results in lower monthly payments compared to a standard repayment mortgage, where both interest and principal are paid down. However, the entire borrowed amount must be repaid in a lump sum at the end of the mortgage term. Nationwide has expanded the acceptable repayment methods beyond just selling the home. Borrowers can now use UK-based savings, investments, pension funds, and other properties to repay the loan. Eligibility for these interest-only mortgages includes a minimum income requirement of £75,000 for sole applicants or £100,000 for joint applications, unless one applicant earns at least £75,000. Mortgage terms can extend up to 40 years, c... download the app to read more