You can now get a £300,000 mortgage with a £50,000 household income

Amid sky-high property prices and hefty deposits, it’s nary concealed that getting a spot connected the housing ladder in the UK astatine the infinitesimal tin consciousness similar an impossible task.

Now, 1 mortgage supplier has revolutionised the traditional application process successful allowing applicants to get up to six times their income.

Nationwide has go the archetypal large lender to connection first-time buyers a woody that gives couples collectively earning £50,000 the accidental to get up to £300,000.

For perspective, lenders traditionally connection betwixt 4 and 5 times the applicant’s wage – though this tin fastener galore retired of a spot connected the lodging ladder.

As per Gov UK figures, the mean UK location terms is present £282,000, portion ONS places emblematic play net astatine £651 (roughly £33,852 per year, which would necessitate a sizeable deposit, to accidental the least).

The concern worsens successful London, wherever spot prices person skyrocketed to specified an grade that the mean location present sells for £687,044 (as per figures from Rightmove). Over the past year, terraced properties person fetched adjacent higher amounts astatine £789,601.

With each that successful mind, it’s nary wonderment young radical – who person mostly been termed ‘Generation Rent’ – are struggling.

How does Nationwide’s caller owe strategy work?

The Helping Hand owe translates to a 33% uplift erstwhile compared with the company’s modular lending agreement, which comes successful astatine astir 4.5 times the applicant’s income. It’s been successful spot since 2021, but the latest statement has seen the worth increase.

Since it was archetypal implemented, it’s proved peculiarly effectual successful London and the South West, wherever first-time buyers person qualified for loans approximating £269,169 (compared with the marketplace mean of £168,699).

‘This latest determination from Nationwide is aimed astatine supporting the government’s lodging ambitions and shows the worth of being portion of a modern communal that is tally for the payment of its members,’ the building society’s website reads.

‘Helping Hand has supported astir 40,000 radical onto the spot ladder since we launched it 3 years ago. We privation to bash much and are boosting the strategy to six times income and expanding the maximum indebtedness size,’ Debbie Crosbie, Nationwide’s Chief Executive, adds.

‘This, alongside our astir caller complaint cuts, further strengthens our market-leading presumption and demonstrates that, arsenic 1 of the UK’s largest lenders, Nationwide continues to enactment first-time buyers first.’

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