Nationwide makes main change to its mortgages which means prospects can borrow £50,000 extra

Britain’s biggest building society has made a major change to its mortgage lending, meaning some customers could borrow £50,000 more. 

Nationwide will now allow new and existing customers to borrow six times their annual earnings, up from 5.5 times previously. 

Generally, most banks limit most customers to 4.5 times their salary, so the change could open the door to buying a bigger or more expensive home. 

New Nationwide customers will need to earn £75,000 as a single buyer to qualify for the higher borrowing, or £100,000 as a couple. 

However, those who already have a mortgage with Nationwide won’t have any minimum income requirement. 

The extra borrowing is available on mortgages with a deposit as little as 5 per cent.  

Borrowing at six times income was already available to qualifying first-time buyers under Nationwide’s Helping Hand mortgage, but now home movers and people remortgaging could get the higher borrowing limit too. 

It means that a couple earning £100,000 between them could now borrow £50,000 more, up from £550,000 to £600,000. 

A single borrower on £75,000 would see their maximum loan rise from £412,500 to £450,000; a £37,500 uplift. 

The amount borrowers are lent will also depend on other factors such as their outgoings and credit history and their ability to pass Nationwide’s affordability tests. 

Higher borrowing will mean bigger mortgage payments and more interest mounting up over time, so it is important to make sure you are comfortable with this. 

Nationwide said that there is an appetite for higher borrowing among its customers. 

In 2025, the mutual said it saw a 57 per cent increase in the number of first-time buyer mortgages taken at or above five times income compared with 2024, as well as an over five-fold increase in loans to those borrowing at or above five and a half times their income. 

It is the latest among several moves Nationwide has made to increase the size of mortgage customers can access. 

Last year, it adjusted its ‘stress rates’ – the hypothetical higher mortgage rates it tests borrowers’ finances against when they apply for a mortgage or remortgage.

It said at the time that It claims that a home mover with a household income of £75,000, who was taking a five or 10-year fixed mortgage on a 25-year term, could previously have borrowed a maximum of £307,000 but could now borrow £336,800 – a £29,800 uplift.

Nationwide was one of many lenders to make such changes, in response to guidance from watchdog the Financial Conduct Authority, which has said that, as interest rates fall, lenders should make sure they are not ‘unduly restricting access to otherwise affordable mortgages’.

This change was backed by Chancellor Rachel Reeves, who loosened financial regulations so that lenders could offer more, larger home loans. 

Previously, a rule introduced after the financial crisis meant loans of more than 4.5 times the borrower’s annual income could only make up 15 per cent of a bank’s mortgage book. 

Henry Jordan, Nationwide’s group director of mortgages, said: ‘The Government and regulatory changes last year have been a game changer for first-time buyers. 

‘Our latest announcement means we will provide similar support to those looking to move home or remortgage to Nationwide and shows our commitment to all parts of the market.’

Several mortgage lenders offer lending of six times salary or more. 

HSBC allows its Premier Banking customers borrow up to 6.5 times their annual income if they get a mortgage with the bank.

And last year, new lender April Mortgages launched a mortgage offering up to seven times the homeowner’s earnings. 

Nicholas Mendes of mortgage broker John Charcol added: ‘Nationwide extending six times income lending beyond first-time buyers is a positive step.

‘ It supports borrowers who are constrained by income multiples rather than the monthly cost, and it shows how lenders are adapting to the reality of today’s housing market.’