Nationwide Building Society has announced it will allow homeowners making a mortgage application for a house purchase to borrow up to 5.5 times their income as long as the total eligible income is more than £100,000.
The option will be available when taking a two, five or ten-year fixed or two-year tracker mortgage.
This applies to first-time buyers, homebuyers and existing Nationwide borrowers for all new applications submitted from 1 August onwards.
It notes that self-employed and equity share applications will continue to use the existing lower loan to income caps.
In addition, the society says it will be extending the maximum loan size for those borrowing up to 90% loan-to-value (LTV) on a fee or no-fee five-year fixed rate mortgage.
From 3 August, up to 75% LTV will increase to £5m up from £2m while the 80% LTV will rise to £1.5m from £1m.
The 85% LTV will go up to £1.5m from £750,000 and the 90% LTV will be £750,000 up from £500,000. The maximum loan for those borrowing at 95% LTV remains at £500,000.
Nationwide Building Society director of mortgages Henry Jordan says: “With house prices continuing to rise, the need for a larger loan has become even more prevalent. As one of the UK’s largest lenders and the biggest building society, it’s important we do all we can to support people purchase their first or next property.”
“The increases we’ve made to the maximum loans we’ll provide at various LTVs brings us in line with other lenders and increases options for borrowers.”
“We know that the ability to borrow enough continues to be a significant hurdle to homeownership, which is why we’ve increased the maximum loan-to-income on house purchase applications. Alongside our Helping Hand offer for first-time buyers, we believe Nationwide continues to provide a compelling proposition for first-time buyers and home movers alike.”
