Nationwide is reducing the minimum income requirements for its Helping Hand mortgage, making it available to a wider group of first-time buyers.
From tomorrow (16th July), single applicants will qualify with a £30,000 salary, down from £35,000, while joint applicants will need a combined income of £50,000, reduced from £55,000.
The change follows the Prudential Regulation Authority’s (PRA) announcement allowing lenders to increase their capacity for high loan-to-income (LTI) lending.
Nationwide has confirmed it has now applied to the PRA for this increase, enabling more borrowers to access up to six times their income through Helping Hand.
Helping Hand, which launched in 2021, has supported around 60,000 first-time buyers and represents the majority of Nationwide’s high LTI lending.
The building society expects the revised criteria will help an additional 10,000 first-time buyers each year.
Henry Jordan, director of home at Nationwide, said: “The PRA’s announcement unlocks lending for first-time buyers at what remains a difficult time for homeownership.
“It has given us the confidence to respond quickly by relaxing our lending criteria on Helping Hand.
“Our changes mean more people, particularly those on lower incomes, could become eligible for a mortgage.
“We also hope our commitment to further lending provides a boost to the UK’s housebuilding ambitions as well as encouraging other lenders to increase support for those looking for a home of their own.”
Nationwide has also raised the maximum loan-to-value on new build houses to 95% and continues to offer £500 cashback on completion, with an additional £500 Green Reward available for energy-efficient homes.
