Nationwide issues urgent message to customers who earn £50,000 or more
Nationwide is offering a big boost to first-time buyers. First major lender to offer first-time buyers ability to borrow six times income up to 95 per cent Loan-to-Value and it enables couples earning £50,000 to borrow £300,000 towards their first home
That is £75k more than standard lending, Nationwide says. Nationwide becomes the first big lender to offer sub-5% rate at 95% LTV for first-time buyers as it cuts rates as a result and has increased max loan sizes, including up to £750k between 90% and 95% Loan-to-Value.
Helping Hand continues to have wide appeal as it will still be available for those on standard incomes, with sole applicants only needing a minimum income of £30,000 to benefit, while joint applicants will need a minimum combined income of £50,000. All Helping Hand applications will continue to be subject to robust underwriting checks, including full assessment of credit score and additional credit commitments, to ensure Nationwide lends responsibly.
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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.”
David Hollingworth, Associate Director, Communications at L&C Mortgages, said: “Helping Hand has been a front runner in expanding the range of options open to first-time buyers who continue to struggle with affordability. Building an adequate deposit is hard enough especially when the available mortgage borrowing is capped, and prices remain high.
"Opening the potential for higher borrowing amounts for the right borrowers will help target the twin challenges that first-time buyers face across the UK. Using the existing experience and success of Helping Hand to further enhance the maximum multiple will give more prospective first-time buyers the hope that ownership can become a reality.”
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 this year and calling for innovations that help overcome these challenges in a responsible way. We welcome this move and hope this is the start of a new and accelerated wave of support for first-time buyers. The timing of this announcement will be welcomed by many first-time buyers, as we’re seeing a much more active housing market than at this time last year, with buyer demand increasing into the traditionally busy Autumn season.”