Use the links below to view details of our purchase types lending criteria:
Purchase types
In this section we cover:
Concessionary Purchase/Genuine Bargain Price
Concessionary Purchase/Genuine Bargain Price is where the property is knowingly being purchased by your client below the market value. The purchase can't be part of a recognised scheme such as Right to Buy or Shared Ownership.
Applications where solicitors are recording the purchase price as the full market value should be keyed as standard with a gift of equity as deposit.
Only applications that are recorded by the solicitor at the reduced price should be keyed as Genuine Bargain Price.
Acceptable scenarios
- Interfamily sale (buying from a relative)
- Employee buying from their employer
- Private tenant buying from their landlord
Lending terms
- The discount must be a gift, not a loan, and there must be no conditions attached to it.
- A deposit is not required unless the loan exceeds our maximum LTV.
- LTV is calculated using the open market value with a maximum of 90%.
- We will not lend more than 100% of the discounted price on a Genuine Bargain Price.
How to apply
- Applications can be submitted via NFI Online, the ownership type selected should be ‘Genuine Bargain Price’.
Lifetime Tenancy
If your client is purchasing a property, and the current occupier will remain in the property but won’t be on our mortgage, and a Lifetime Tenancy has or will be created on or before completion, we’ll decline the application.
Where a current occupier will remain in the property and won’t be on our mortgage, this is acceptable subject to:
- The current occupier signing one of the following:
- Our occupiers consent to mortgage incorporated in the mortgage deed (England and Wales)
- Mortgage Deed for Scotland – Consent Declaration (Scotland)
- Deed of Consent (Northern Ireland)
- The current occupier not having a Lifetime Tenancy.
- The solicitor will carry out checks and inform us if there’s a Lifetime Tenancy.
We can also accept applications where the Lifetime Tenancy will be revoked before completion.
Restricted Resale Price
Restricted Resale Price is where a property is sold at a percentage of open market value.
This will be considered by Nationwide where the property is sold at a defined percentage of the full unrestricted open market value. Any other means of assessing the property price isn't acceptable.
Your client should know what percentage price restriction applies. It is recommended your client seeks advice from their solicitor/conveyancer who can check our Low Cost Home Ownership requirements before submitting their application.
Applications for a property with a Restricted Resale Price can be submitted via NFI Online, the ownership type selected should be ‘Restricted Sale Price’.
Lending terms
- LTV percentage calculations for both product and credit scoring will be based on the restricted price/value, not the open market value.
- Restricted Resale Price properties aren't acceptable in connection with Equity Share Loan, Sheltered or Shared Ownership applications.
- Remortgages are also considered. LTV percentage is based on the restricted value, not the open market value.
- The maximum LTV percentage is 90% based on the restricted value, not the open market value.
- If the property is a New Build, then our New Build LTV limits will apply.
Our offer will have conditions requiring the solicitor/conveyancer to check the scheme meets our requirements.
Restricted Resale Market
We can consider applications for properties with a Restricted Resale Market.
These can include, for example, a restriction that only permits someone with connections to the local area to purchase or occupy the property. The applicant’s solicitor/conveyancer should confirm the scheme meets our requirements prior to submitting the application.
Applications for a property with a Restricted Resale Market can be submitted via NFI Online as a standard purchase, or standard remortgage. When completing the valuation details screen, it should be noted that the property is subject to a Restricted Resale Market clause.