Key details to know as Nationwide confirms new rule for customers | Personal Finance | Finance
Nationwide mortgage criteria: need to know
- Nationwide has lowered the income threshold for borrowers to access six times their income lending from £100,000 to £75,000, opening up higher borrowing limits to more households.
- The building society now allows new borrowers with an eligible income of £75,000 or more to borrow up to six times their income when moving home or remortgaging with additional borrowing. Existing Nationwide customers face no minimum income level for the same lending multiple.
- Stephen Perkins, managing director of Yellow Brick Mortgages, said: “Nationwide lowering the income threshold to access its higher borrowing limits is good news for many borrowers looking to move home or remortgage with additional borrowing, particularly those who may previously have fallen just short of qualifying.”
- Mortgage brokers have welcomed the change as a positive step for borrowers who were previously restricted by affordability models. Emma Jones from Whenthebanksaysno.co.uk praised Nationwide for recognising that many households with stable incomes have been “unfairly restricted” despite demonstrating they can manage their finances.
- However, experts warn that the move highlights the broader issue of house prices racing ahead of earnings. Harry Goodliffe from HTG Mortgages noted that lenders are having to “stretch income multiples just to keep homeownership within reach” in expensive parts of the country.
- Industry professionals stress that borrowers should remain cautious about taking on higher debt levels, with normal affordability assessments still applying to all applications.
READ THE FULL STORY: Nationwide announces new rule for customers ‘from today’
