First-time buyers on lower incomes targeted in Nationwide lending move
The UK's second largest mortgage firm and director Henry Jordan have reduced the minimum income thresholds to reach more homebuyers.
First-time buyers can now secure mortgages from Nationwide with lower minimum incomes, it has been confirmed.
A single person with £30,000 wages and couples with £50,000 combined salaries are eligible for ‘Helping Hand’ loans from the UK’s second largest mortgage firm.
Each threshold is now £5K lower than previously, allowing more potential borrowers to qualify, and reach up to six times their income.
Additional 10,000
Nationwide, which lent to more FTBs last year than anyone else, says the changes will mean an additional 10,000 people will be helped to clamber onto the housing ladder.
The move comes as Chancellor Rachel Reeves launched the Government’s ‘Freedom to Buy’ mortgage guarantee scheme.
Freedom to Buy will be aimed at FTBs who can only afford a deposit of 5%.
Amend restrictions
Also, the Bank of England’s Financial Policy Committee (FPC) discussed loosening the limits of LTV (Loan to Value). This move would allow lenders to issue high LTV mortgages to more than 15% of their customers.
The FPC has recommended the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) amend the restrictions.
And the Prudential Regulation Authority (PRA), which is part of the Bank of England, has published plans to allow smaller banks and building societies to compete in the mortgage market.
Our changes mean more people, particularly those on lower incomes, could become eligible for a mortgage.”
Henry Jordan, Director of Home at Nationwide (main picture) says: “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,” he says.
“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.”
