Nationwide offers big boost to first-time buyers

Nationwide is giving first-time buyers a major boost by lending up to six times income. The move - the first by a major high street lender - helps address the affordability challenge that still prevents many people from getting onto the property ladder.

Britain’s biggest building society will extend the maximum Loan-to-Income (LTI) ratio available through its Helping Hand – the mortgage boost for first-time buyers launched in 2021. The extended Helping Hand mortgage will be available from Tuesday 24 September 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% Loan-to-Value (LTV). This will give potential homeowners a 33 per cent uplift versus Nationwide’s standard lending at 4.5 times income.

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 percentage points, making Nationwide the first major lender to offer a sub-5% rate on its standard range to those with a five per cent deposit1. These market-leading rates will also be effective from Tuesday 24 September.

Nationwide is also increasing its maximum loan sizes, including those above 90% LTV, which will increase from £500,000 to £750,000. This change is also effective from Tuesday 24 September. According to UK Finance data, around five per cent of all house purchase loans were over £500,000 in the six months to June 2024 - a figure even higher in London (22%).



Matt Smith, Rightmove’s Mortgage Expert said: “This package of measures is an encouraging development in the first-time buyer market, as it directly addresses a major barrier that many face in being able to borrow enough to take that important first step on the housing ladder. It is likely to be particularly beneficial in areas such as London and the South East where house prices are higher, and currently the average asking price of a home is more than five times the average salary of two people. We’ve been highlighting affordability as a key issue facing first-time buyers.

Eligibility

Below you'll find the eligibility criteria. The availability of Helping Hand is subject to many factors, including, but not limited to, credit score, how much debt the applicant has, etc.

• All applicants must be first time buyers
• 5 and 10 year fixed rates available at all LTV tiers up to 95%
• Minimum income of £30k sole applicant, £50k for joint applicants. All income sources (except self-employed income) can be included.
• The maximum lending limits depend on the application.
• Meeting this criteria doesn't guarantee that applicants will be offered Helping Hand.

Not eligible

• Self-employed income for either applicant
• Interest Only
• In conjunction with any scheme or non-standard ownership type (for example Deposit Unlock, First Homes, Shared Ownership, Genuine Bargain Price, Right to Buy and Help to Buy)

Please call one of our Expert Mortgage Advisers to see if this offer is suitable for your specific circumstances. We are an Intermediary for Nationwide so can gladly process your application for you.

If this product is not suitable or you do not meet the eligibility criteria, we will look at all other First-time Buyer options for you to consider.

Contact Us

For further details about the mortgage and protection products we offer as a fully independent mortgage broker, or any other mortgage information, book your FREE CONSULTATION with one of our expert Mortgage and Protection Advisers.

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