The lender will extend its maximum loan-to-Income ratio through its Helping Hand mortgage scheme
Nationwide Building Society is offering a major boost to FTBs by allowing loans up to six times income, a move aimed at addressing affordability challenges.
Effective from tomorrow, the lender will extend its maximum loan-to-Income ratio through its Helping Hand mortgage scheme.
Helping Hand enables FTBs to borrow up to 95% LTV on five- or ten-year fixed rate mortgages. Nationwide’s increase to six times income offers 33% uplift compared to its standard lending limit of 4.5 times income.
Introduced in 2021, Nationwide’s Helping Hand has proven especially popular in regions with higher property prices, such as the Outer South East and London, where the average first-time buyer property costs £262,504 and £452,797, respectively.
Nationwide has lent more than £7.5 billion through Helping Hand since its inception, supporting almost 40,000 FTBs. The scheme will continue to be available to those earning a minimum of £30,000 as sole applicants or £50,000 jointly, with all applications subject to affordability and credit checks.
Apart from the LTI increase, the lender announced that it would cut mortgage rates for FTBs by up to 31 bps, making it the first major lender to offer sub-5% rates for those with a 5% deposit.
Reductions for FTBs include a five-year fixed rate at 95% loan-to-value with a £999 fee, now at 4.99%, a 10-year fixed rate at 75% loan-to-value with no fee at 4.69%, and a five-year fixed rate at 90% loan-to-value with a £999 fee, lowered to 4.49%.
New customers moving home will see cuts such as a five-year fixed rate at 60% LTV with a £1,499 fee at 3.74%, and a two-year fixed rate at 90% LTV with a £999 fee at 5.04%. Existing customers moving home benefit from similar cuts, including a five-year fixed rate at 60% LTV with a £1,499 fee at 3.74%, and a five-year fixed rate at 95% LTV with no fee at 5.04%.
Helping Hand has supported nearly 40,000 people onto the property ladder since we launched it three years ago, said Debbie Crosbie, chief executive of Nationwide Building Society. We want to do more and are boosting the scheme to six times income and increasing the maximum loan size.
The post Nationwide allows FTB loans up to six times income first appeared on Invest for Property London, Buy Residential property UK.
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