Have you been thinking about getting a mortgage? You're going to need to think again as lenders are scrapping their home loan deals.Others are doing the same as the home mortgage market goes into lockdown amid the coronavirus which has brought the economy to a virtual standstill.It rules out first-time borrowers or existing homeowners with little equity in their home.Nationwide said the change will not impact existing applications.
Other lenders that have taken similar action include Santander and Skipton Building Society but many have gone further, by reducing the loan-to-value ratio to 60%.Lenders that have done this include Barclays, Halifax, Virgin Money and The Family Building Society, while the Coventry Building Society has cut its LTV ratio to 65%.
"So they don't really have the capacity to do a lot of new mortgages right now. If they are going to do any, they want high-quality low-risk mortgages." Nationwide said:"Existing applications, where a product has already been reserved, will continue to progress."