Nationwide increases 5.5 times salary offer to first-time buyers with 5% deposit

by Aaron Strutt

Feb 10 2022

Nationwide for Intermediaries has enhanced its 'Helping Hand' 5.5 times salary mortgage scheme to make the products available to more first time buyers.

The scheme is designed to give first-time buyers the option of borrowing more when taking one of its five or ten-year fixed-rate mortgages. From Friday 11 February, it will be available to borrowers with a 5% deposit, up from the original 10% deposit. 

The minimum qualification income of £31,000 is for sole applicants, rising to £50,000 for joint applicants. All income sources except self-employed income can be included.

Aaron Strutt, product director at Trinity Financial, says: "More of the lenders are offering enhanced income multiple mortgages, but Nationwide's product is different because of the lower salary qualifying threshold.

"Some of the lenders are offering 5.5 times salary mortgages, but they have varying acceptance criteria and many borrowers need to be working as a Professional or earning over £75,000 to access the cheapest rates. Some smaller lenders offering income stretches for lower earners, but the rates are often more expensive."

Nationwide's policy change means a first-time buyer couple with a joint income of £50,000 could borrow up to £275,000. The maximum loan size with a 5% deposit is £500,000, and applicants can make annual overpayments of up to 10% on the fixed-rate products.  

Nationwide offers £500 cashback on its Helping Hand products which is paid into the nominated account within 30 days of completion and it does not charge for standard property valuations. There are no early repayment charges on its tracker rates products, and the maximum term is 40 years.

Call Trinity Financial on 020 7016 0790 to secure an income stretch mortgage or book a consultation