Nationwide Building Society has introduced enhanced affordability criteria for remortgage customers taking out a five or 10-year fixed rate, potentially allowing them to borrow more.

The new approach, effective from today, applies a different affordability calculation for eligible applicants, including both employed and self-employed borrowers. Sole applicants must earn at least £40,000 a year, while joint applicants need a combined income of £70,000 to qualify.

Nationwide said all applications would still be subject to its standard affordability assessment to ensure responsible lending. The changes are designed to help borrowers with a proven mortgage payment history and the security of a long-term fixed rate.

The lender has also confirmed that customers remortgaging without additional borrowing will continue to be able to borrow up to 6.5 times their income, to a maximum of 95% loan-to-value.

Illustrative examples from Nationwide show that a couple earning £70,000 and taking out a 20-year term could now borrow up to £314,300, compared with £280,700 previously – an increase of £33,600. Another example shows that joint applicants earning £50,000 over a 40-year term could borrow £325,000, up from £308,900.

The move follows a similar change made in December 2024 for home movers, when the building society extended enhanced affordability to those purchasing their next property on five or 10-year fixed rates.

Henry Jordan, Nationwide’s director of home, said: “The ability to borrow enough can be a barrier when people look to remortgage, even when they can demonstrate a clean payment history.

“We’re pleased to be able to help them by making this change, which should put Nationwide front of mind for those wanting a new mortgage deal.

“With our Helping Hand for first-time buyers as well as the enhanced affordability for home movers and now for those looking to remortgage, we are demonstrating that the country’s second largest lender remains committed to supporting all borrowers across the mortgage market.”