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Post updated: November 22nd, 2025
5 minute read
More first time buyers will be able to borrow 6 x their salary with just a 5% deposit, due to changes to affordability rules announced by Nationwide.
The lender says the change will benefit all types of borrowers, including first-time buyers are eligible for its Helping Hand mortgage. Nationwide says that applicants will be able to borrow on average £28,000 more due to the change. While under the new rules, if you’re remortgaging you may be able to borrow over 6 x your salary. Click here to jump down to this section.
In January, Nationwide announced that it had 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.
This meant that 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.
The move has proved popular. Figures show there has been a 53% increase in the number of first-time buyers taking out the mortgage. In the year to September 2025, 23,000 first time buyers took out a Helping Hand mortgage compared to around 15,000 in the 12 months prior.
Previously, Nationwide’s Helping Hand deal allowed borrowing up to 5.5 times income.
However, these mortgages are only available if you’re taking out a 5 or 10-year fixed-rate deal. Applicants will also need to meet the lender’s eligibility and affordability checks.
Nationwide adjusted its mortgage affordability calculation in May 2025 by reducing its standard stress rate and the rate applied to eligible first time buyers and home movers fixing their deal for at least five years.
This means borrowers may be able to borrow more on a mortgage and the move follows the FCA’s clarification around lender flexibility in how they set their stress rates.
These changes mean more first time buyers may be able to borrow 6 x their salary on a mortgage.
Nationwide has published the following example (with the caveat that it’s illustrative and that the amount that can be borrowed will be dependent on individual circumstances):
First time buyer Helping Hand Mortgage example
Our Mortgage Expert Sarah Tucker says,
“Nationwide’s Helping Hand mortgage can give some first-time buyers the affordability boost they need to get onto the property ladder, particularly when higher property prices and rising rents have made affordability increasingly challenging. However, it’s important borrowers fully understand what higher borrowing means for their monthly payments and longer term finances.
While borrowing at higher income multiples can sound uncomfortable to some people, affordability is still stress-tested carefully by lenders to ensure repayments remain manageable both now and if interest rates were to rise in future. For the right borrower, these products can open up opportunities that may previously have felt out of reach.”
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. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for your individual circumstances.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
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We know how tough it is for first time buyers. In fact, a report by the Building Societies Association, of which Nationwide is a member, has suggested first time buyers were facing the toughest conditions in 70 years to buy a house.
But the good news is that 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, Skipton Building Society has 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.
Nationwide says changes to its affordability rules will benefit all types of borrowers and the lender says the largest boost to the borrowing amount is expected on remortgages where there is no additional borrowing.
It gives the following illustrative example which shows a loan to income ratio of 6.18, although note this example is over a 40 year term.
Remortgage example
Let the award-winning expert advisers at Mortgage Advice Bureau find the right mortgage for your individual circumstances.
Get fee-free remortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
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