Nationwide has unveiled a series of major changes aimed at boosting support for first-time buyers, including a new mortgage option allowing loans up to six times an applicant’s income. 

Following recent announcements from Halifax and Lloyds, which now allow first-time buyers to borrow up to 5.5 times their annual income, Nationwide has gone a step further. 

Additionally, Nationwide is reducing its mortgage rates and increasing its maximum loan sizes. Borrowers seeking a loan for more than 90% of a property’s value can now borrow up to £750,000, an increase from the previous £500,000 limit.

These changes come amid a highly competitive mortgage market, triggered by the Bank of England’s August interest rate cut and speculation of further reductions. In response, lenders have been racing to lower their rates. 

Nationwide’s updates include rate reductions of up to 0.31 percentage points, making it the first major lender to offer fixed-rate deals below 5% for buyers with a 5% deposit.

Nationwide’s decision to extend borrowing limits for first-time buyers means a couple with a joint income of £50,000 can now borrow up to £300,000 under its Helping Hand scheme. This is a substantial increase from the £225,000 previously available under Nationwide’s standard terms and an increase from £275,000 under its Helping Hand scheme, which was launched in 2021.

Since the launch of Helping Hand, Nationwide has lent over £7.5bn to around 40,000 first-time buyers. 

Nationwide’s chief executive, Debbie Crosbie, commented: “Helping Hand has already helped thousands of people onto the property ladder, and we are now enhancing the scheme by offering loans up to six times income and increasing maximum loan sizes. Alongside our rate cuts, these changes cement our leading position in the market and show that we are committed to putting first-time buyers first.”