Nationwide expands 5.5x income borrowing to 95% LTV

The Society’s ‘Helping Hand’ offering gives first-time buyers the option of borrowing more when taking one of its five or ten-year fixed rate mortgages. From Friday 11 February, it will now be available on mortgages up to 95% LTV, up from the original 90%.

Nationwide will continue to apply a lower stress rate and higher maximum loan-to-income ratio where applicants opt for one of the Society’s standard five or 10-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 95% LTV.

It means a first-time buyer couple with a joint income of £50,000 could borrow up to £275,000 rather than the £225,000 they could borrow with a conventional 95% LTV mortgage, assuming 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, said: “Alongside saving for a deposit, the ability to borrow enough on their mortgage continues to be a significant hurdle to home ownership. As one of the leading lenders to first-time buyers, we have played our part in tackling that key challenge through Helping Hand during a time when house prices have continued to rise.

“As a mutual, we were founded to support people into their first home and that remains at the heart of what we do. We know that raising even a 10% deposit can be tough for some, which is why we are extending Helping Hand to our 95% loan-to-value range and, in doing so, helping more people get a home of their own.”