Nationwide opens up six-times income lending to movers and remortgagors

Nationwide has widened access to its high loan-to-income (LTI) mortgages, enabling home movers and remortgagors to borrow up to six times their income at up to 95% loan to value (LTV).

The mutual, which is the UK’s largest building society, previously reserved six-times income lending for qualifying first-time buyers under its Helping Hand range. The latest change means new and existing customers moving home or remortgaging can now access the higher income multiple, subject to affordability.

For new customers, the enhanced borrowing is available where income meets minimum thresholds. Sole applicants must earn at least £75,000 a year while joint applicants must have combined income of at least £100,000

Existing Nationwide borrowers looking to move in 2026 will not face any minimum income requirement for six-times income lending, which the lender says is aimed at supporting previous first-time buyers who used Helping Hand and now want to take their next step.

Nationwide will offer the higher multiple at up to 95% LTV, with the actual loan size still determined by its standard affordability assessments, including outgoings, credit history and stress testing. The society already permits borrowing up to 6.5 times income for like‑for‑like remortgages that do not involve any additional borrowing, again up to 95% LTV.

The uplift in maximum income multiples can be material. A couple with joint income of £100,000 could see their maximum loan increase from £550,000 at 5.5 times income to £600,000 at six times, an extra £50,000 of borrowing capacity. A single applicant on £75,000 could see their maximum move from around £412,500 to £450,000, an uplift of £37,500.

John Charcol mortgage technical manager Nicholas Mendes said the move directly targets a problem brokers are seeing more often.

“In practical terms, this is a meaningful change because it targets a specific constraint we’re seeing more often,” he told Mortgage Introducer. “There are borrowers who can comfortably service the monthly payment but can’t reach the loan size they need under standard income multiples. Extending six times income lending to home movers and remortgagers, and doing so up to 95% LTV, gives those clients a clearer route to move or refinance without having to compromise as heavily on property choice or timing.”

He added: “The borrowers most likely to benefit are second steppers and movers in higher cost areas, where the gap between incomes and house prices is still the biggest issue. It will also be relevant for existing Nationwide customers who previously used Helping Hand and are now looking at the next stage, whether that’s moving home or raising additional funds, because it supports the progression piece rather than treating higher income multiples as a first-time buyer only tool.”

Nationwide stressed that higher borrowing brings higher monthly repayments and more interest paid over the term, and said brokers and borrowers should be confident that payments remain sustainable.

The building society said it has seen strong appetite for higher income multiples. In 2025 it recorded a 57% rise in the number of first‑time buyer loans taken at or above five times income compared with 2024, alongside more than a five‑fold increase in lending at or above 5.5 times income. That growth followed last year’s regulatory changes, including the FCA’s clarification of stress rate expectations and the PRA’s review of LTI flow limits.

Mendes cautioned that higher income multiples don’t remove the need for careful budgeting.

“Higher income multiples don’t remove the need for disciplined affordability,” he said. “Brokers should be stress testing the budget against higher reversionary rates, factoring in any known changes to household costs, and making sure clients aren’t stretching simply because the headline multiple allows it. Product structure matters too – a slightly lower rate isn’t always the best answer if it comes with higher fees, or if the client is likely to need flexibility within the fixed period.”

Looking at the wider market, Mendes said the move “fits the direction of travel” as lenders adjust to recent regulatory changes.

“Lenders are revisiting how they apply stress tests and affordability buffers following the FCA clarification, and the ongoing discussion around LTI rules has encouraged more confidence to lend at higher multiples where the case is strong,” he said. “We’re likely to see more selective flexibility like this, rather than a broad loosening across the board.”

Nationwide group director of mortgages Henry Jordan said government and regulatory changes had been “a game changer for first‑time buyers” and were now helping the mutual extend support to a wider range of borrowers.

He added that, combined with the expansion of Helping Hand to six times income in September 2024, the new policy “means we will provide similar support to those looking to move home or remortgage to Nationwide and shows our commitment to all parts of the market.”

Broker reaction

L&C Mortgages associate director David Hollingworth said the shift could be particularly significant for those looking to trade up in more expensive areas.

“Enhanced multiples have often been focused on first-time buyers, who may need a bigger boost to make the leap to home ownership,” he told Mortgage Introducer. “However, they are not the only ones that may want to stretch further, whether it’s to purchase a new home for a growing family or to borrow more to improve their existing home. Having more flexible solutions could help in a market where prices continue to pose affordability issues.”

Hollingworth said Nationwide had been a prime mover in using higher income multiples for first-time buyers, with others now following suit.

“Nationwide’s prime focus for higher multiples has tended to be on first-time buyers and other lenders have followed suit in boosting the availability of lending for that sector to beyond five times income,” he said. “The more lenders have stepped into higher multiples the broader the choice has become and there are more lenders offering 5.5 to six times income now. That’s true of a number of the bigger players, and some like April Mortgages have even edged higher to a maximum of seven times income. Of course, each lender may apply different criteria to prevent overstretching so borrowers will need to find the right match.”

He added that recent rate cuts and regulatory shifts are now feeding directly into what customers can borrow.

“The combination of lower interest rates and clarification around stress testing has combined with a more flexible approach to the flow of higher multiple lending to very rapidly alter maximum borrowing,” said Hollingworth. “Eligible borrowers could now find that their potential borrowing has risen by tens of thousands of pounds. That, coupled with lower interest rates, could make a big difference to affordability and make buying sooner a realistic option.”

However, he stressed that higher LTIs will not be right for everyone and that brokers will be central to judging when to use them.

“There’s been such fast-paced change that it could make sense to revisit customers from as little as 12 months ago that may have felt their plan was beyond reach,” he said. “Of course, just because lenders may offer higher multiples doesn’t mean that it will be right for everyone. For some it could feel a bigger stretch than they would like to make, and there’s also a lot of eligibility criteria, often around minimum income, that could rule it out. That’s where brokers will play a critical role in giving advice on how, or if, it will work and whether it is the right approach for customers.”