Nationwide has made a major change to its mortgage lending conditions, allowing some customers to borrow £50,000 more. Both new and existing customers can borrow up to six times their annual earnings. The change will help millions of Brits who want to purchase their own homes, as well as those wanting bigger or more expensive properties, as most banks typically limit some customers to 4.5 times their salary.
To qualify for the higher borrowing amount, new Nationwide customers who are single buyers must earn £75,000, while couples must earn £100,000 between them. Those who already have a mortgage with the building society will not have a minimum income requirement, as Nationwide already allows borrowing up to 6.5 times.
The enhanced borrowing rate was already offered to first-time buyers as part of Nationwide’s Helping Hand mortgage. However, homeowners and those remortgaging are now also able to receive the higher limit.
Henry Jordan, Nationwide’s Group Director of Mortgages, said: “The government and regulatory changes last year have been a game-changer for first-time buyers. Alongside our Helping Hand expansion to six times income in September 2024, they’ve enabled greater support for those who need it most.
« Over the past year, we’ve seen a five-fold increase in the number of first-time buyers borrowing between 5.5 and six times income. Our latest announcement means we will provide similar support to those looking to move home or remortgage to Nationwide and shows our commitment to all parts of the market.”
A couple earning £100,000 between them could now borrow £600,000, £50,000 more than the £550,000 available previously. A sole applicant earning £75,000 now has a loan rise from £412,500 to £450,000, resulting in a £37,500 increase.
For existing Nationwide customers moving home or borrowing more, and who have an income of £50,000, the maximum borrowing amount has increased from £275,000 to £300,000.
It is important to note, however, that the amount applicants can borrow depends on other factors, including credit history and outgoings. Applicants will also have to pass Nationwide’s affordability tests.
