"We want to do more and are boosting the scheme to six times income and increasing the maximum loan size."
- Debbie Crosbie, Nationwide’s chief executive
Nationwide will now lend up to six times income across its first-time buyer mortgage range.
The move means Nationwide is the first major high street lender to offer first-time buyers the ability to borrow six times income up to 95% LTV.
The Society will extend the maximum loan-to-income (LTI) ratio available through its Helping Hand mortgage offering, which launched in 2021. The extended Helping Hand mortgage will be available from tomorrow and will give first-time buyers the option of borrowing up to six times income when taking a five or ten-year fixed rate up to 95% LTV. This will give potential homeowners a 33% uplift versus Nationwide’s standard lending at 4.5 times income.
The change means a first-time buyer couple with a joint income of £50,000 can now borrow up to £300,000 with Helping Hand, compared to £225,000 without, an increase of £75,000, assuming a 5% deposit.
In further support to first-time buyers, Nationwide is also cutting mortgage rates. First-time buyer rates will be reduced by up to 0.31%, making Nationwide the first major lender to offer a sub-5% rate on its standard range to those with a 5% deposit. It is also introducing more sub-4% rates for new and existing customers moving home, now starting from 3.74%.
In addition, Nationwide is increasing its maximum loan sizes, including those above 90% LTV, which will increase from £500,000 to £750,000.
Debbie Crosbie, Nationwide’s chief executive, said: “Helping Hand has supported around 40,000 people onto the property ladder since we launched it three years ago. We want to do more and are boosting the scheme to six times income and increasing the maximum loan size. This, alongside our most recent rate cuts, further strengthens our market-leading position and demonstrates that, as one of the UK’s largest lenders, Nationwide continues to put first-time buyers first.”
