Interest-Only Mortgage from Nationwide

Interest-Only Mortgage Policy from Nationwide offers lower monthly payments — but it comes with strict criteria. In this guide, we explain how it works, who’s eligible, and how MDJ Mortgages can help you compare lenders and apply with confidence.

Features of a Nationwide Interest-Only Mortgage

• Available across new purchase and remortgage product range, including first‑time buyers
• Interest‑Only maximum: 75% LTV
• Part and Part maximum: 85% LTV
• Maximum term: 40 years, or retirement if sooner (maximum age 70)
• Maximum loan amount: £5 million

Nationwide Interest‑Only Mortgage

With an Interest‑Only mortgage, you only pay the interest on your mortgage balance each month.

• Monthly payments may be lower compared to a repayment mortgage of the same amount.
• At the end of the term, the full balance must be repaid.
• Nationwide requires you to demonstrate how you intend to repay the balance — this could be by selling the property, or by using a combination of approved repayment plan options.

Part and Part Mortgages

With a Part and Part mortgage, you pay off some of the mortgage balance, but not the whole amount.

• Monthly payments may be lower compared to a full repayment mortgage.
• You will still have a balance to repay at the end of the term.
• Apart from loan‑to‑value (LTV), Part and Part mortgages share the same features and eligibility criteria as Interest‑Only mortgages, including repayment plan requirements.
• The maximum LTV for Part and Part is 85%, of which up to 75% LTV can be on an Interest‑Only basis.

Eligibility for a Nationwide Interest-Only Mortgage

✔ Minimum income criteria: £75,000 for sole applicants, £100,000 for joint applicants (unless one applicant earns £75,000). Based on primary basic income only.
✔ Minimum lease term: 70 years at application.
✔ Minimum equity requirements apply only where sale of main residence is being used as the repayment vehicle.

Not eligible if:
✖ Capital raising to repay unsecured debt
✖ Declared secured loan not being settled
✖ Undeclared secured loan found at credit reference agency
✖ Declared secured loan but higher monthly payment found at credit reference agency
✖ Retired, or term extends into retirement
✖ Using Interest‑Only with another scheme (Shared Ownership, Right to Buy, Helping Hand)
✖ Property is not main residence (e.g., holiday home)

Why This Matters for You

Interest‑Only mortgages can be attractive, but they are not suitable for everyone. Nationwide’s stance highlights the importance of independent advice to compare policies across lenders. What one lender may decline, another might accept — and that’s where MDJ Mortgages can help.

How MDJ Mortgages Supports You

At MDJ Mortgages, we:

• Review the whole market to find lenders whose criteria match your circumstances
• Provide clear, tailored advice so you understand the risks and benefits of Interest‑Only versus repayment
• Handle the application process, ensuring all documentation and repayment strategies are presented correctly
• Offer fee‑free advice, giving you flexibility without extra cost

Next Steps for a Nationwide Interest-Only Mortgage

If you’re considering an Interest‑Only mortgage, or simply want to understand whether it’s right for you:

👉 Contact us today for a full market mortgage review
👉 Book a free consultation to explore your options
👉 Let us compare Nationwide’s criteria with other lenders to ensure you get the most suitable deal

MDJ Mortgages is here to make complex criteria simple, and to give you confidence in your mortgage decisions.

Source: Nationwide Intermediary – Interest‑Only Lending Criteria

Risk Warnings: Your home may be repossessed if you do not keep up repayments on your mortgage