In a major shift for the UK housing market, Nationwide Building Society has announced a substantial expansion of its high loan-to-income lending criteria. This significant change means that home movers and customers seeking to remortgage can now potentially borrow up to six times their annual income, marking a notable increase from previous limits.
Enhanced Borrowing Opportunities for Existing and New Customers
The revised lending terms apply to both new and existing customers who are either moving home or remortgaging their properties. This enhanced offering is available for loans up to 95% loan-to-value, providing greater flexibility for those navigating the current property landscape.
To qualify for this increased borrowing capacity, sole applicants must demonstrate a minimum annual income of £75,000. For joint applications, the required minimum income rises to £100,000. These income thresholds remain consistent with previous requirements that allowed eligible groups to borrow up to 5.5 times their income.
Practical Implications for Borrowers
The changes translate to substantial increases in potential borrowing amounts. For instance, a sole applicant who is a new customer moving home or remortgaging, with an income of £75,000, may previously have been able to borrow up to £412,500 from Nationwide. Under the new terms, they could potentially access up to £450,000 – representing an increase of £37,500.
Similarly, joint applicants who are new customers moving home or remortgaging with a combined income of £100,000 may previously have been able to borrow £550,000. Now, they could borrow up to £600,000 – a significant £50,000 increase that could make a meaningful difference in property purchasing power.
Regulatory Changes Driving Lending Expansion
Nationwide has revealed that this increased support for borrowers, along with the ability to widen and enhance lending, has been unlocked by regulatory changes implemented last year. The building society reported that in 2025, it witnessed a striking 57% increase in the number of first-time buyer mortgages taken at or above five times income compared with 2024.
Henry Jordan, Nationwide’s group director of mortgages, commented on the development, stating: "The Government and regulatory changes last year have been a game changer for first-time buyers. Alongside our Helping Hand expansion to six times income in September 2024, they’ve enabled greater support for those who need it most."
Industry Response and Market Adaptation
Mortgage industry experts have welcomed Nationwide's move as a positive development for the housing market. Nicholas Mendes, mortgage technical manager at John Charcol, observed: "Nationwide extending six times income lending beyond first-time buyers is a positive step, particularly as the first wave of Helping Hand customers starts to look at their next move, a remortgage, or additional borrowing."
Mendes further explained: "It supports borrowers who are constrained by income multiples rather than the monthly cost, and it shows how lenders are adapting to the reality of today’s housing market. With the right advice, borrowers can use that flexibility to move sooner and secure a deal that fits both the immediate need and the longer-term plan."
Continued Support for First-Time Buyers
It's important to note that Nationwide’s Helping Hand scheme, which allows lending up to six times income, remains exclusively available to first-time buyers. The building society reported a five-fold increase over the past year in the number of first-time buyers borrowing between 5.5 and six times their income.
Jordan added: "Our latest announcement means we will provide similar support to those looking to move home or remortgage to Nationwide." This expansion represents a significant evolution in lending practices, reflecting both regulatory changes and market demands in the current property climate.
