Nationwide Building Society has reduced the minimum income requirement for sole applicants using its Helping Hand mortgage product, in a move aimed at widening access to high loan-to-income borrowing for first-time buyers.

Individuals earning £35,000 or more will be eligible for Helping Hand, down from a previous threshold of £40,000. The minimum combined income for joint applicants remains unchanged at £55,000.

Helping Hand allows eligible first-time buyers to borrow up to six times their income on five or 10-year fixed rate mortgages, up to a maximum loan-to-value of 95%. This represents a significant increase on Nationwide’s standard income multiple of 4.5, enabling buyers to access up to 33% more borrowing power.

The lender said the change would allow it to support more buyers despite the high demand for its extended lending offer, which has been subject to regulatory constraints. Under current rules, lenders are restricted to a maximum of 15% of their mortgage book being classed as high loan-to-income, defined as over 4.5 times income for residential lending.

Nationwide, which describes itself as the UK’s leading lender to first-time buyers, has periodically adjusted the minimum income thresholds for Helping Hand in order to remain within these limits. Last year, minimum income requirements stood at £30,000 for sole applicants and £50,000 for joint applications, but were increased in response to strong demand.

IMPROVING ACCESS TO HOME OWNERSHIP

Henry Jordan, director of home at Nationwide, said the mutual remained committed to improving access to home ownership for first-time buyers.

“We continue to do all we can to put first-time buyers first and aim to set our Helping Hand minimum income requirements at levels that give it the widest appeal,” he said.

“Helping Hand has proven extremely popular with prospective homeowners, especially since we extended it to six times income, and we continue to provide as much support as possible, whilst remaining within the high loan-to-income lending regulations.

“While we are pleased to be able to reduce the minimum income requirement for sole applicants again, we want to do more and that’s why we continue to call for a review of the 15% limit.”

In addition to enhanced borrowing capacity, first-time buyers using Helping Hand receive £500 cashback on completion. A further £500 is available through Nationwide’s Green Reward scheme for those purchasing energy-efficient homes.