Nationwide Building Society has introduced a new lending policy allowing customers to borrow up to six times their annual income. The scheme, which has already launched, targets both new and existing customers remortgaging or moving home.
The change comes as lenders increasingly seek to support buyers struggling with house prices and affordability limits. While some in the mortgage industry have welcomed the move, others have cautioned that it carries potential risks for both borrowers and the housing market.
Broader Access through ‘Helping Hand’, but Concerns around Who Benefits Most
Under the enhanced criteria, new customers applying for a mortgage through Nationwide must earn at least £75,000 annually for individual applications or £100,000 for joint applications. However, existing customers will face no such income requirements, according to recent reporting.
The initiative is an extension of the lender’s ‘Helping Hand’ mortgage programme, which now covers loans up to 95% loan-to-value (LTV). This follows a previous step by Barclays, which introduced a similar measure in late 2025. According to Nationwide, the number of first-time buyers taking loans of 5x income or higher rose 57% in 2025 compared with the year before, while loans above 5.5x income increased fivefold.
Ben Perks, managing director at Orchard Financial Advisers, called the move “a great step in the right direction,” adding that affordability remains a significant hurdle for borrowers. Yet he also pointed out that “outside the capital individuals on £75k and couples on £100k aren’t the ones that are hardest hit” by affordability challenges.
The sentiment was echoed by Riz Malik, director at R3 Wealth, who observed that “expanding criteria is a great way of showing [lenders’] commitment to the market.” He noted that the change could help bring hesitant borrowers back, although confidence remains a limiting factor.
Industry Voices Warn of Potential Risks to Borrower Resilience
While the scheme aims to increase access to homeownership, several mortgage experts have voiced concern over the long-term implications. According to Stephen Perkins, managing director at Yellow Brick Mortgages, such high-income multiples could trigger a “snowball” effect across the market. “We do not want a repeat of the 2008 crash,” he stated, suggesting that widespread adoption of similar lending strategies could lead to unsustainable mortgage practices.
Patricia McGirr, founder of the Repossession Rescue Network, stressed that the changes do not necessarily amount to “reckless lending,” but emphasised that “high income doesn’t equal low risk.” She warned that borrowing at six times one’s income leaves little room for flexibility if interest rates rise or personal circumstances change. “Even high earners can come unstuck quickly when mortgage deals reset or circumstances change,” she said.
Aaron Strutt, of Trinity Financial, noted that these types of mortgages are typically geared toward professionals or younger buyers seeking larger homes, rather than entry-level properties. While lenders like Barclays and HSBC offer similar schemes without rate premiums, he cautioned that affordability must remain central.
The prevailing view among critics is that while such moves may assist a specific group of borrowers in the short term, they do little to resolve broader issues around housing costs and wage stagnation. McGirr concluded that “sensible lending isn’t about how much you can borrow on a good day, it’s about how well you cope when the pressure hits.”
