Nationwide is stepping up its support for first-time buyers (FTBs) with a significant enhancement to its mortgage offerings. The society will now allow FTBs to borrow up to six times their income when opting for a five- or 10-year fixed rate mortgage, with loans available up to 95% loan-to-value (LTV). This extended offering, part of Nationwide’s Helping Hand mortgage scheme, provides a 33% boost in borrowing power compared to its standard lending cap of 4.5 times income.
Along with this lending increase, Nationwide is also lowering rates for first-time buyers by up to 0.31%, making it the first major lender to offer a sub-5% rate to those with just a 5% deposit. These rate reductions apply across a range of mortgage products, including two-, three-, five-, and 10-year fixed-rate mortgages, with notable offers such as:
– 5-year fixed at 95% LTV with a £999 fee, reduced to 4.99%
– 10-year fixed at 75% LTV with no fee, reduced to 4.69%
– 5-year fixed at 90% LTV with a £999 fee, reduced to 4.49%
– 5-year fixed at 85% LTV with a £999 fee, reduced to 4.19%
Additionally, Nationwide is increasing its maximum loan sizes, with loans above 90% LTV rising from £500,000 to £750,000, giving borrowers more flexibility in today’s competitive housing market.
Debbie Crosbie, Nationwide’s chief executive, highlighted the impact of the Helping Hand mortgage, stating: “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 combination of increased borrowing power, lower rates, and higher loan limits will no doubt provide much-needed assistance to first-time buyers navigating today’s challenging market.