Nationwide has announced two new ranges of products aimed at providing more positive options amid ongoing financial challenges in the UK. Here, Thomas Jones looks at what Nationwide are offering for both first-time buyers and current homeowners.
The first significant introduction is the enhancement of Nationwide’s Helping Hand scheme, now allowing first-time buyers to borrow up to six times their annual income. This is a significant increase from the standard four-and-a-half times income currently offered by many lenders and reflects a considerable effort to address affordability issues, especially in regions with high property prices such as London and the South East; allowing those not just in these areas but across the country, to bridge the gap between their income and rising house prices, particularly as average prices continue to vastly exceed the average salary.
The scheme is available to sole applicants earning a minimum £30,000 or £50,000 for joint applicants, and crucially offers 95% Loan to Value (LTV) products to help those who would otherwise struggle to save the full 10% deposit. Coupled with the boost in borrowing capacity, this could help many secure that first home that would otherwise be out of reach.
In addition to supporting first-time buyers, homeowners looking to move or remortgage are also benefiting from new Nationwide products as they become the first major lender to offer sub-4% rates for its fixed-rate products. Only those seeking smaller mortgages stand to benefit from these cuts with a maximum borrowing of 60% LTV with a five-year fixed rate at 3.74%
These steps by Nationwide reflect an effort to ease the pressure on borrowers in a housing market where affordability remains an enduring issue, especially with the Bank of England holding the interest at 5% this month. Whether through higher borrowing capacity for first-time buyers or lower rates for existing homeowners, Nationwide have positioned themselves as the go-to lender for those wishing to make homeownership more accessible, and the hope remains that this now triggers other lenders to compete for business and soften their mortgage pricing.
If you are looking to purchase your first home, remortgage your existing property or move house please do not hesitate to contact our expert team who will be able to assist you further.
