The Helping Hand mortgage now potentially allows first-time buyers to borrow up to six times their income. This can increase borrowing capacity by up to 33% more than Nationwide’s standard lending limits, offering a significant boost to those looking at buying their first home! Mortgage affordability has long been a struggle, especially or first-time buyers and especially over the last couple of years. This mortgage product is available on Nationwide’s 5-year and 10-year fixed-rate mortgages and offers loan-to-value (LTV) options of up to 95%, making it a flexible and appealing choice for buyers with smaller deposits. In this blog, I will run through the criteria for the helping hand mortgage and our advisors offer their insights.
Key Benefits Of The Helping Hand Mortgage
Helping Hand provides several key benefits that can make a big difference to first-time buyers:
Enhanced Borrowing Potential
Borrow up to 6x your income, helping you secure the home you need.
Competitive Fixed Rates
Choose between 5 or 10-year fixed rates for stability and peace of mind.
Cashback on Completion
Enjoy £500 cashback when the mortgage completes, with an additional £500 for energy-efficient homes.
Eligibility Criteria For Helping Hand Mortgage
While Helping Hand offers significant advantages, there are specific eligibility criteria applicants must meet:
- Income Requirements
- Sole applicants must earn a minimum of £40,000.
- Joint applicants must have a combined income of at least £55,000.
- All income sources can be considered except self-employed income.
- First-Time Buyers Only
- Applicants must be purchasing their first property.
LTV Options
Available at all LTV tiers up to 95%. That means that you could have as little as 5% deposit to use the scheme, depending on your other eligibility criteria.
Credit and Financial Health
Applicants must meet credit score and affordability requirements. Additional factors, such as existing debt levels, will also be assessed.
Exclusions
Nationwide has outlined specific cases where Helping Hand will not be available:
- Self-Employed Income
- Applications relying on self-employed income are not eligible.
- Non-Standard Ownership Schemes
- Helping Hand cannot be used in conjunction with schemes such as First Homes, Shared Ownership, Right to Buy, or Help to Buy.
- Interest-Only Mortgages
- Only repayment mortgages are eligible.
How To Apply For A Helping Hand Mortgage
While the Helping Hand mortgage can be a game-changer, availability is subject to regulatory limits and Nationwide’s own lending criteria. Meeting the eligibility requirements does not guarantee approval, as factors such as credit score, debt levels, and affordability assessments will influence the final decision. The best thing you can do to start the ball rolling is speak with a qualified and experienced mortgage advisor to check you initial eligibility.
Why Choose Nationwide Helping Hand?
For first-time buyers facing the challenge of rising property prices, the Nationwide Helping Hand mortgage can provide much-needed support. By increasing borrowing potential and offering competitive terms, this product bridges the gap for those who might otherwise struggle to secure a home.
With the added bonuses of cashback incentives and flexibility in deposit requirements, Helping Hand offers an attractive pathway to homeownership. However, it’s crucial to work closely with a mortgage advisor to ensure eligibility and explore all available options.
Speak To A Mortgage Advisor
Senior mortgage and protection advisor at Oportfolio Jade Pinkerton had this to say about first-time buyer borrowing power:
“People always ask us, is it 4 or 5 times income that you can have as a borrowing amount? Ultimately, it isn’t that simple. It used to be, but now more factors are taking into account, for example the cost of living where the property is, credit commitments, student loan, self employed vs employed, any bonus or variable income isn’t usually 100% considered, is the property leasehold or freehold? And so on. However, some first-time buyers can get significantly higher lending amounts now. A small handful of lenders are making this work better and Nationwide are one of them. We really like this and think it is a really positive thing. But the important question is the associated monthly payments – it’s always good to make sure they are affordable and clients are financially protected against this commitment. We look after first-time buyers properly, providing independent advice with a comfortable and smooth process.”
If you’re ready to take the first step towards buying your first home, the Nationwide Helping Hand mortgage could be the solution you’ve been looking for. Talk to one of our mortgage advisors at Oportfolio Mortgages today to find out more.