Nationwide offering 5.5 times salary mortgages to higher earners
Nationwide for Intermediaries has changed its mortgage criteria to make it easier for higher earners to secure larger mortgages.
The building society will now lend up to 5.5x salary mortgages on house purchase applications when the applicant's total income is over £100,000 a year.
The policy applies to first-time buyers, homebuyers and existing Nationwide borrowers. Unfortunately, self-employed applicants will continue to use the existing lower loan-to-income caps.
Aaron Strutt, product director at Trinity Financial, says: "More of the lenders are offering income stretch mortgages to help borrowers raise enough money to purchase the property they want. Not all lenders limit the amount they will lend to the self-employed.
"In many cases applicants do not need the full 5.5 times salary; they need more generous affordability calculations to secure their mortgages, especially if they have unsecured debts or childcare commitments."
Helping Hand scheme still available
Nationwide's 5.5 times salary Helping Hand income stretch mortgages are still available to first-time buyers providing they earn £37,000, rising to £55,000 for joint applicants.
While the initiate has been incredibly popular with first-time buyers, there is a more limited choice of rates.
Nationwide also increases maximum loan sizes
Nationwide has increased the maximum loan sizes on its five-year fixed rate products.
The maximum loan size up to 75% loan-to-value has increased to £5 million. Mortgages loan sizes up to 85% loan-to-value have risen to £1.5million, while mortgages up to 90% loan-to-value are now £750,000.
The maximum loan for 95% loan-to-value will remain at £500,000.
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