In a tremendous boost to first-time buyers, Nationwide Building Society has today announced a significant reduction in the minimum income levels for its Helping Hand mortgage scheme, making home ownership more accessible to thousands of individuals throughout the UK. From the 16th of July 2025, single applicants will be required to earn £30,000, down from £35,000, and joint applicants will be allowed to qualify with a combined income of £50,000, from £55,000 currently.
It is in response to recent regulatory changes that allow lenders to increase their high loan-to-income (LTI) lending capacity. The innovation follows the Prudential Regulation Authority (PRA) refresh which provides lenders with greater flexibility in providing mortgages of up to six times an applicant’s salary, a key feature of Nationwide’s Helping Hand scheme.
Nationwide Opens Up High LTI Mortgages
Introduced in 2021, the Helping Hand mortgage has already assisted around 60,000 first-time buyers and represents the bulk of Nationwide’s high LTI lending. Following the latest revision, the building society predicts that a further 10,000 new buyers will benefit from the scheme every year.
Additional Incentives and Green Rewards
In another attempt to help buyers, Nationwide has also increased the maximum loan-to-value (LTV) on new build homes to 95%, helping those with smaller deposits to afford a home. The lender continues to offer £500 cashback on mortgage completion and an additional £500 Green Reward for buyers who purchase energy-efficient homes.
What This Means for the UK Housing Market
This move is also likely to increase competition among lenders and bring welcome relief for potential homeowners struggling to access conventional levels of income and deposits. With UK house prices remaining elevated and inflation still impacting affordability, the reduced thresholds will enable more people, especially younger and lower-income buyers, to take their first step onto the housing ladder.
Speak To a Mortgage Professional Today
With lending standards becoming more and more complex and different lenders offering different support to new buyers, it is more important than ever to contact a mortgage broker who can help you arrange your next mortgage. Call or message us now to discover how we can help.
