Nationwide: changing the game for first-time buyers

If you’ve been dreaming of owning your own home, it might not be out of reach much longer.

Nationwide, one of the UK’s leading building societies, has just unveiled a major boost for first-time buyers. Stepping onto the property ladder could now be more of a reality for many, with increased borrowing power and better fixed mortgage rates.

Designed to support potential homeowners, the building society’s move addresses one of the biggest hurdles faced – affordability.

Nationwide is now offering first-time buyers:

– Up to six times their income on mortgage borrowing
– Sub-5% mortgage rates on 95% Loan To Value (LTV) mortgages
– Increased maximum loan size, from £500,000 to £750,000

Mortgages Up To Six Times Borrower Income

With Nationwide’s Helping Hand mortgage, eligible first-time buyers now have the chance to borrow up to six times their income. This is a significant jump from the usual 4.5 times income limit that most lenders offer.

So, what difference could this make? Subject to eligibility, a couple with a joint income of £50,000 could now borrow up to £300,000 towards a first home, an increase of £75,000 more on what could be typically borrowed before.

Reduced Mortgage Rates

On top of that, if you’re facing the challenge of raising the deposit and meet the relevant criteria, it’s now possible to access competitive mortgage rates if you have saved up the 5%.
Nationwide is cutting its mortgage rates for first-time buyers, leading the market by offering sub-5% rate on their 95% Loan-to-Value mortgages.

Bigger Loans

If you’re looking at higher-value properties, there’s more good news. Nationwide has increased the maximum loan size for borrowers with a 90-95% LTV, up from £500,000, to £750,000. This move could make a huge difference for buyers seeking a family home.

Supporting First-Time Buyers

Nationwide’s Helping Hand mortgage, launched in 2021, has already helped around 40,000 people get their first home. The building society continues to show commitment to prospective homeowners. It’s possible that other major lenders will follow Nationwide’s example, in making the dream of owning a home more achievable. It is early days yet, but we’ll be looking ahead to find if this action, and factors such as more new homes, ease the demand for our landlords’ private rental properties. 

Time to Buy…

If you’re a tenant, or still living with parents and dreaming of owning your own home, this could be the perfect time to take the next step, and reassess your finances. We’d recommend speaking with an independent financial advisor, to find out about mortgage deals are available for you. By understanding the options available, and taking advantage of the resources provided, you can ensure you’re making the right choice.

If you’re ready to start your journey towards homeownership, we’d be happy to put you in touch with one of our trusted partners for an informal chat.

Sources:
Nationwide offers big boost to first-time buyers (nationwidemediacentre.co.uk)