Nationwide extends 5.5x income borrowing to 95% LTV

“We know that raising even a 10% deposit can be difficult for some, which is why we are extending Helping Hand to our 95% value loan range”

The Company’s “Helping Hand” offer gives first-time buyers the opportunity to borrow more when they take out one of its five- or ten-year fixed rate mortgages. From Friday 11 February, it will now be available on mortgages at up to 95% LTV, down from 90% originally.

Nationwide will continue to apply a lower stress rating and higher maximum loan to income ratio when applicants opt into one of the Company’s standard five- or ten-year fixed rate products. This will increase affordability by up to 20%, allowing more people to buy their first property up to a maximum of 95% LTV.

This means that a first-time buyer couple with a joint income of £50,000 could borrow up to £275,000 instead of the £225,000 they could borrow with a conventional 95% LTV mortgage, assuming that ‘no other costs affect affordability.

New buyers who use Helping Hand for a better price will have access to the standard product line, with consistent pricing, fees, and features. All first-time buyers get a £500 cashback at the end of their mortgage.

Henry Jordan, Director of Mortgages at Nationwide, said: “Along with saving for a deposit, the ability to borrow enough against their mortgage continues to be a significant barrier to homeownership. As one of the leading first-time buyer lenders, we played our part in solving this key challenge through Helping Hand at a time when house prices continued to rise.

“As a mutual, we were founded to support people in their first home and this remains at the heart of what we do. We know raising even a 10% down payment can be difficult for some, which is why we’re extending Helping Hand to our 95% loan-to-value range and, in doing so, helping more people secure their own homes.

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