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Post updated: January 9th, 2025
First time buyers can now borrow up to six times their salary with a 5% deposit, due to changes announced by Nationwide.
The lender said it has extended the loan-to-income ratio on its Helping Hand mortgages to help first time buyers who are struggling to borrow enough to buy a home.
So, a first-time buyer couple with a joint income of £50,000 can now borrow up to £300,000 with Helping Hand compared to £225,000 from a lender that lets you borrow 4.5x income.
Previously, Nationwide’s Helping Hand deal allowed borrowing up to 5.5 times income, a move followed by some other major lenders.
However, to qualify for one of these mortgages, you’ll need a minimum income of £30,000 as a sole applicant or a minimum combined income of £50,000 for joint applicants and they’re only available if you’re taking out a five or 10-year fixed-rate deal. Applicants will also need to meet the lender’s affordability checks.
David Hollingworth, Associate Director, Communications at L&C Mortgages, says ‘Building an adequate deposit is hard enough especially when the available mortgage borrowing is capped, and prices remain high.’
‘Opening the potential for higher borrowing amounts for the right borrowers will help target the twin challenges that first-time buyers face across the UK.’
‘Using the existing experience and success of Helping Hand to further enhance the maximum multiple will give more prospective first-time buyers the hope that ownership can become a reality.’
Nationwide also announced it’s increasing its maximum loan sizes from £500,000 to £750,000.
The uptake is expected to be concentrated in London and south east England where house prices are highest. The move follows a report by the Building Societies Association, of which Nationwide is a member, earlier this year which suggested first time buyers were facing the toughest conditions in 70 years to buy a house.
The repayments are likely to be a significant proportion of your monthly income. So you’ll want to ensure this is the right move for you.
The best mortgage rates for a Helping Hand mortgage are for those with the biggest deposits. For a smaller 5% deposit, here’s what you’d pay:
This worked example shows it’s worth shopping around. But you don’t have to lift a finger. Speak to our partners at L&C Mortgages and you can get fee-free advice. Set them to work and they’ll search over 90 lenders to find the right deal for you.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
Competition between mortgage lenders has intensified in recent months as they clamour for business. And there are some new mortgage options designed to help first time buyers.
For example, in September 2024, Skipton Building Society made changes to its 100% Track Record mortgage to allow people to buy a new build flat with no deposit and increased the maximum mortgage term from 35 to 40 years. The lender also launched a 100% Shared Ownership Track Record mortgage.
Some alternative ways to buy a home if you’ve got a small deposit include:
Stay up to date with our Best first time buyers mortgage rates guide – we bring you the best mortgage rates in the UK whatever your deposit size, from 0% to 40%. While this will give you the overview, it’s still advisable to speak to a fee-free mortgage broker. They’ll do the hard work for you and shop around to find you the best deal.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
March 25, 2025 
