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Brokers welcome Nationwide's relaxed Helping Hand criteria but urge borrowers to "tread carefully"

ended 15. July 2025

NATIONWIDE has announced that it will reduce the income thresholds for its Helping Hand mortgages by £5,000 from today, allowing more borrowers to access loans of up to six times their income. Brokers welcomed the move but warned borrowers to “tread carefully”, though one property expert described it as "madness".

The announcement by the lender follows the regulator’s decision to ease high loan-to-value lending rules, potentially opening the door for more buyers to get onto the property ladder.

Starting today, eligible first-time buyers can apply for a mortgage with a £30,000 salary, down from £35,000, while joint applicants can apply with a £50,000 combined salary, down from £55,000. Nationwide says this is expected to support an additional 10,000 first-time buyers each year.

Henry Jordan, Nationwide’s Director of Home said: “The PRA’s announcement unlocks lending for first-time buyers at what remains a difficult time for homeownership. It has given us the confidence to respond quickly by relaxing our lending criteria on Helping Hand. Our changes mean more people, particularly those on lower incomes, could become eligible for a mortgage.

“We also hope our commitment to further lending provides a boost to the UK’s housebuilding ambitions as well as encouraging other lenders to increase support for those looking for a home of their own.”

Riz Malik, Director at R3 Wealth, welcomed the move but said borrowers must “tread carefully”: “Lenders are wasting no time in boosting activity following the regulator’s move on high loan-to-value lending. The property market has shown real resilience, and Nationwide is open for business, especially during the quieter summer months. But borrowers must tread carefully and ensure any mortgage commitments remain affordable both now and in the long run.”

Michelle Lawson, Director at Lawson Financial, said the move is especially timely given that rates are also coming down: “First-time buyer friendly Nationwide's enhancement will unlock higher borrowing options for those who need it most. Expect to see more lenders follow suit as the rules are relaxed. Now is the time to start thinking about getting on the ladder, especially with rates reducing too.”

Ben Perks, Managing Director at Orchard Financial Advisers, said “this seemingly small tweak will bring many more borrowers into the mix. The reality is there is a need to borrow more money than ever before and Nationwide look to be exploring ways to facilitate this. Time will tell if they’re being generous or overzealous”.

Rob Peters, Principal at Simple Fast Mortgage, was also positive, though sounded a note of caution: “This is great news for would-be buyers who just fall short under standard income multiples. Lowering the income bar allows more people to qualify for bigger loans and potentially helps unblock a sluggish housing market. But the key is making sure the guardrails stay firmly in place. Stress tests, repayment buffers and sensible lending criteria are essential. Done right, this could help more people own a home. Done wrong, it could saddle them with unaffordable debt. Only time will tell.”

Kundan Bhaduri, Property Developer at The Kushman Group, was sceptical: "Can the mortgage brokers pause their celebrations for just a second? Lending six times income when interest rates sit above 5% and inflation remains sticky is nothing but a return to pre-2008 optimism. Yes, we need to get Britain moving, but not by stretching borrowers to breaking point. This is madness."

8 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
Lenders are wasting no time in boosting activity following the regulator’s move on high loan-to-value lending. The property market has shown real resilience, and Nationwide is open for business, especially during the quieter summer months. But borrowers must tread carefully and ensure any mortgage commitments remain affordable both now and in the long run.
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Michelle Lawson
Director at Lawson Financial
First-time buyer friendly Nationwide's enhancement will unlock higher borrowing options for those who need it most. Expect to see more lenders follow suit as the rules are relaxed. Now is the time to start thinking about getting on the ladder, especially with rates reducing too.
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Justin Moy
Managing Director at EHF Mortgages
It's great to see more first-time buyers able to enter the property market, and Nationwide has had a good track record through their Helping Hand scheme. In reality, the amount anyone could borrow on an income of £30k will be hard to stretch to 6x income, as affordability calculations will factor in utility bills, council tax and food, on top of other assumed ONS data costs, before any other commitments are considered. But this move by Nationwide will help more enter the market for their first time.
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Ben Perks
Managing Director at Orchard Financial Advisers
This seemingly small tweak will bring many more borrowers into the mix. The reality is there is a need to borrow more money than ever before and Nationwide look to be exploring ways to facilitate this.
Time will tell if they’re being generous or overzealous.
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Rob Peters
Principal at Simple Fast Mortgage
This is great news for would-be buyers who just fall short under standard income multiples. Lowering the income bar allows more people to qualify for bigger loans and potentially helps unblock a sluggish housing market. But the key is making sure the guardrails stay firmly in place. Stress tests, repayment buffers and sensible lending criteria are essential. Done right, this could help more people own a home. Done wrong, it could saddle them with unaffordable debt. Only time will tell.
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Dariusz Karpowicz
Director at Albion Financial Advice
Nationwide's income threshold reduction is a welcome lifeline for first-time buyers, though it's rather like offering a ladder to someone in a swimming pool - helpful, but it doesn't address the depth of the problem. Borrowing six times a £30,000 salary when rates hover above 5% feels optimistic, especially when affordability still factors in heating bills and grocery shopping.
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Tony Redondo
Founder at Cosmos Currency Exchange
Nationwide’s decision to lower Helping Hand mortgage income thresholds and offer up to 6x income loans from tomorrow aims to boost homeownership. Positive outcomes include more first-time buyers, increased demand, and rising market confidence. Possible downsides include the risk of over-leveraging, price inflation, and potential defaults. In short, we engineer the usual boom-bust cycle, again. Will it get Britain moving? Yes, short-term, by spurring transactions, but housing shortages (4.3M home deficit) and economic risks (e.g., rising rates) may limit gains. Without a big improvement in the supply of new housing, it is likely to end in tears.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Can the mortgage brokers pause their celebrations for just a second? Lending six times income when interest rates sit above 5% and inflation remains sticky is nothing but a return to pre-2008 optimism. Yes, we need to get Britain moving, but not by stretching borrowers to breaking point. This is madness. The real problem isn't lending multiples, it is house prices relative to earnings. When the average UK home costs nine times average salary, even 6x income mortgages leave buyers scraping for deposits. Nationwide might be easing criteria, but they're treating the symptom, not the cause and understandably, mortgage broker are rejoicing for all the new business this brings. Will it help? Marginally. But without addressing supply constraints and planning bottlenecks, we are just making it easier for people to chase the same overpriced properties.