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Borrow Up To 6x Income: Nationwide Expands Mortgage Options
21 Jan
Summary
- Nationwide now permits eligible customers to borrow six times their earnings.
- This policy change allows for potentially larger mortgages with a 5% deposit.
- The update extends higher borrowing limits to home movers and remortgagers.
Britain's largest building society, Nationwide, has updated its mortgage lending criteria, enabling eligible customers to borrow six times their annual earnings. Previously capped at 5.5 times, this adjustment offers potential for borrowing up to £50,000 more, depending on individual circumstances.
The enhanced lending is accessible with deposits as low as 5%. While new single applicants require an income of £75,000 or £100,000 for couples, existing Nationwide mortgage holders face no minimum income requirement for this higher borrowing limit.
This expansion of six-times income lending now benefits not only first-time buyers but also home movers and individuals looking to remortgage. This aligns with a broader market trend, as lenders adapt to regulatory changes and market conditions.
Several other lenders also offer higher income multiples. HSBC allows Premier Banking customers to borrow up to 6.5 times their income, and April Mortgages offers up to seven times earnings. This signals a market shift towards accommodating greater borrowing capacities.
