"Our new Helping Hand option supports borrowers in meeting the affordability requirements, making it easier for them to buy a home of their own."
Nationwide has announced that there will be £1 billion of lending available via Helping Hand. The Society will apply a lower stress rate and higher maximum loan-to-income ratio where applicants opt for one of the Society’s standard five or ten-year fixed rate products. This will enable an uplift in affordability of up to 20%, allowing more people to buy their first property up to a maximum 90% LTV.
The change means a first-time buyer couple with a joint income of £50,000 can now borrow up to £275,000 with Helping Hand, rather than the £225,000 they could borrow previously, assuming a 10% deposit and no other costs impacting affordability.
First-time buyers using Helping Hand for enhanced affordability will have access to the standard product range, with consistent product rates, fees and features. All first-time buyers benefit from £500 cashback on completion of their mortgage.
Henry Jordan, director of mortgages at Nationwide Building Society, said: “Nationwide was founded to help people into homes of their own and that remains the case as much today as it did 135 years ago. In the UK there are nearly five million private rented households, but many of these renters have dreams and aspirations of buying a home of their own. However, with household incomes rising at a slower rate than house prices, many first-time buyers are finding it increasingly hard to get onto the property ladder. Our new Helping Hand option supports borrowers in meeting the affordability requirements, making it easier for them to buy a home of their own.”
