Nationwide extends max LTI ratio to six times income

Nationwide has extended its maximum loan-to-income (LTI) ratio and will now lend up to six times income for first-time buyers.

The move, which Nationwide said is the first by a major high street lender, aims to address the affordability challenges preventing people from getting onto the property ladder.

The offering is available through the building society’s “Helping Hand” mortgage and will be available from tomorrow (24 September). It gives first-time buyers the option of borrowing up to six times income when taking a five or 10-year fixed rate up to 95% loan-to-value (LTV).

Nationwide said this will give potential homeowners a 33% uplift compared to its standard lending at 4.5 times income.

The change means a first-time buyer couple with a joint income of £50,000 can now borrow up to £300,000 via the Helping Hand mortgage, compared to £225,000 without – an increase of £75,000, assuming a 5% deposit and no other costs impact affordability.

“Helping Hand has supported around 40,000 people onto the property ladder since we launched it three years ago,” Nationwide chief executive, Debbie Crosbie, said. “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.”



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