Dry funding markets are accelerating mortgage rationing in the UK, with Nationwide Building Society – Britain’s second largest lender – halving its maximum loan size to £500,000 ($1.06 million).
The reduction in the lender’s maximum loan size was announced overnight along with a change of maximum LVR from 95 to 90 per cent.
Nationwide’s divisional director for mortgages Matthew carter said the changes would allow the lender to “maintain control of the volume of business the Society is attracting” while enabling it to continue offering its full range of mortgages to existing members in a “controlled and prudent way”.
The changes come just one month after the building society withdrew two products and increased rates on several others.
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