Nationwide extends lending but experts warn ‘not without risk’ | Personal Finance | Finance

Nationwide has broadened its 6x income lending to include home movers and remortgagers, a move that brokers have hailed as a “great step in the right direction”, albeit “not without risk”. The bank revealed this week that it would now offer up to 6x income loans to both new and existing customers moving home or remortgaging up to 95 per cent loan‐to‐value (LTV), under its Helping Hand scheme.

To be eligible for the increased borrowing, new customers moving home or remortgaging with Nationwide will need a minimum annual income of £75,000 for single applicants, or £100,000 for joint applications. However, there will be no minimum income requirements for existing Nationwide customers.

This follows a similar initiative by Barclays in November 2025. In 2025, Nationwide witnessed a 57 per cent surge in the number of first-time buyer mortgages taken at or above 5x income compared with 2024, along with a more than five-fold increase in loans to those borrowing at or above 5.5x their income.

Ben Perks, MD at Stourbridge-based Orchard Financial Advisers, welcomed the news but noted it wouldn’t benefit those on lower incomes.

He said: “This is a great step in the right direction. Affordability is a big stumbling block for borrowers, as the cost of housing forces people to stretch themselves to the max.

“The criteria is slightly questionable though, outside the capital individuals on £75k and couples on £100k aren’t the ones that are hardest hit when it comes to affordability. So, other than London and other high value areas, it doesn’t quite help the borrowers that need it most.”

Stephen Perkins, MD at Norwich-based Yellow Brick Mortgages, cautioned that high LTV mortgages were fraught with risk.

He said: “When the restriction on the amount of lending by a lender can be over 4.5x income was lifted, the justification was that some lenders would offer more, some wouldn’t and the overall % across the marketplace would remain below the desired threshold.

“However, as expected, more lenders want to compete to help more customers borrow more, so this will snowball until there is a real risk of offering unaffordable mortgages. We do not want a repeat of the 2008 crash.

“Right now Nationwide, like others, will set income minimums for this, but by already saying no minimum for existing customers that is the start of a complete easing of this. Whilst great for borrowers chances of buying, puts them at risk down the line.”

Patricia McGirr, founder at Burnley-based Repossession Rescue Network, also highlighted the elevated risk.

She said: “This isn’t reckless lending, but it is a reminder that high income doesn’t equal low risk. Borrowing 6x income can help keep the housing market moving, particularly for home movers and remortgagers who are otherwise stuck.

“But stretching affordability only works while rates, jobs and health behave themselves. Even high earners can come unstuck quickly when mortgage deals reset or circumstances change. This will suit a narrow group with strong finances and clear buffers.

“It does nothing for the wider affordability problem and it should never be sold as a solution. The danger is normalising bigger multiples instead of building resilience. Sensible lending isn’t about how much you can borrow on a good day, it’s about how well you cope when the pressure hits.”

Aaron Strutt, product and communications director at London-based Trinity Financial, suggested this approach targets younger individuals and professionals looking to purchase larger properties.

He said: “The list of lenders offering up to 6x salary mortgages has got even longer especially for higher earners keen to get on the property ladder. While a 6x salary might seem like quite a stretch, many borrowers may not need to raise the full 6x income; they may need just over 5.5 or slightly more to get the property they want.

“These mortgages are useful for many younger people and professionals aiming to buy larger homes rather than traditional starter flats. Barclays and HSBC do not charge a premium on the rate to access their income-stretch mortgages, unlike some lenders that charge higher rates or require applicants to take longer-term fixes.

“They do have stricter minimum income requirements, though. Nationwide was the first major lender to offer up to 6x salary mortgages to first-time buyers, and the scheme has been incredibly popular. Metro Bank and Bank of Ireland recently eased their criteria as well to offer 6x salary as well.”

Riz Malik, director at Southend-on-Sea-based R3 Wealth, believes this could entice borrowers back to the market.

He added: “Lenders expanding criteria is a great way of showing their commitment to the market. All we need is confidence to return which may be an issue for borrowers extending their borrowing.”