{"id":116975,"date":"2026-01-25T09:40:00","date_gmt":"2026-01-25T09:40:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=116975"},"modified":"2026-01-25T08:39:07","modified_gmt":"2026-01-25T08:39:07","slug":"borrow-income-clears-this-threshold","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/borrow-income-clears-this-threshold\/","title":{"rendered":"You Can Now Borrow More Than Ever, If Your Income Clears This Threshold"},"content":{"rendered":"\n

Nationwide Building Society has introduced a new lending policy allowing customers to borrow up to six times<\/strong> their annual income. The scheme, which has already launched, targets both new and existing customers remortgaging or moving home.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Broader Access through \u2018Helping Hand\u2019, but Concerns around Who Benefits Most<\/strong><\/h2>\n\n\n\n

Under the enhanced criteria, new customers applying for a mortgage through Nationwide must earn at least \u00a375,000<\/strong> annually for individual applications or \u00a3100,000<\/strong> for joint applications. However, existing customers will face no such income requirements, according to recent reporting.<\/p>\n\n\n\n

The initiative is an extension of the lender\u2019s \u2018Helping Hand<\/a>\u2019 mortgage programme, which now covers loans up to 95%<\/strong> 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 i<\/strong>ncome or higher rose 57% in 2025 compared with the year before, while loans above 5.5x<\/strong> income increased fivefold.<\/p>\n\n\n\n

Ben Perks, managing director at Orchard Financial Advisers, called the move \u201ca great step in the right direction<\/em>,\u201d adding that affordability remains a significant hurdle for borrowers. Yet he also pointed out that \u201coutside the capital individuals on \u00a375k and couples on \u00a3100k aren’t the ones that are hardest hit\u201d by affordability challenges.<\/p>\n\n\n\n

The sentiment was echoed by Riz Malik, director at R3 Wealth, who observed that \u201cexpanding criteria is a great way of showing [lenders\u2019] commitment to the market<\/em>.\u201d He noted that the change could help bring hesitant borrowers back, although confidence remains a limiting factor.<\/p>\n\n\n\n

Industry Voices Warn of Potential Risks to Borrower Resilience<\/strong><\/h2>\n\n\n\n

While the scheme aims to increase access to homeownership<\/a>, several mortgage experts have voiced concern over the long-term implications. According to Stephen Perkins<\/strong>, managing director at Yellow Brick Mortgages, such high-income multiples could trigger a \u201csnowball\u201d effect across the market. \u201cWe do not want a repeat of the 2008 crash<\/em>,\u201d he stated, suggesting that widespread adoption of similar lending strategies could lead to unsustainable mortgage practices.<\/p>\n\n\n\n

Patricia McGirr<\/strong>, founder of the Repossession Rescue Network, stressed that the changes do not necessarily amount to \u201creckless lending,\u201d but emphasised that \u201chigh income doesn\u2019t equal low risk<\/em>.\u201d She warned that borrowing at six times one\u2019s income leaves little room for flexibility if interest rates rise or personal circumstances change. \u201cEven high earners can come unstuck quickly when mortgage deals reset or circumstances change<\/em>,\u201d she said.<\/p>\n\n\n\n

Aaron Strutt<\/strong>, 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 <\/strong>and HSBC <\/strong>offer similar schemes without rate premiums, he cautioned that affordability must remain central.<\/p>\n\n\n\n

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 \u201csensible lending isn\u2019t about how much you can borrow on a good day, it\u2019s about how well you cope when the pressure hits<\/em>.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Nationwide now lets some borrowers access up to six times their income for a mortgage. It\u2019s already rolling out, but financial advisers are sounding warnings.<\/p>\n","protected":false},"author":10,"featured_media":116977,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-116975","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/116975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=116975"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/116975\/revisions"}],"predecessor-version":[{"id":116978,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/116975\/revisions\/116978"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/116977"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=116975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=116975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=116975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}