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“We know it can be difficult for some to raise even a 10% down payment, which is why we’re extending Helping Hand to our 95% loan-to-value ratio.”
The company’s “helping hand” offering gives first-time buyers the opportunity to borrow more when they take out one of their five- or 10-year fixed-rate mortgages. As of Friday 11th February, it is now available for mortgages up to 95% LTV instead of 90% originally.
Nationwide will continue to apply a lower debit rate and a higher maximum loan-to-income ratio when applicants choose one of the Company’s standard five- or ten-year fixed-rate products. This will allow for up to a 20% increase in affordability, allowing more people to buy their first property with an LTV of 95% or less.
This means a first-time buyer couple with a combined income of £50,000 could borrow up to £275,000 rather than the £225,000 they could borrow with a traditional 95% LTV mortgage, provided no other costs hamper affordability.
First time buyers using Helping Hand for improved affordability have access to the standard product range with consistent product pricing, fees and features. All first-time buyers benefit from £500 cashback on completion of their mortgage.
Henry Jordan, director of mortgages at Nationwide, said: “Besides saving for a deposit, being able to borrow enough for the mortgage remains a significant barrier to home ownership. As one of the leading lenders to first-time buyers, we have done our part to help Helping Hand meet this key challenge at a time when home prices have continued to rise.
“As a mutual, we were set up to support people in their first home and that remains at the heart of what we do. We know it can be difficult for some to raise even a 10% down payment, which is why we are expanding Helping Hand to our 95% loan-to-value ratio, helping more people get homes of their own.”
