Lender targets those looking to remortgage with longer-term fixed rates
Nationwide Building Society has updated its affordability assessment for homeowners seeking to remortgage, allowing eligible applicants to potentially borrow more when choosing a five- or 10-year fixed rate product.
The revised criteria, effective from today, August 12, apply to both employed and self-employed borrowers. To qualify, single applicants must earn at least £40,000, while joint applicants require a combined income of £70,000. The changes are designed to offer higher borrowing limits for those with a proven record of mortgage repayments and who opt for longer-term fixed rates.
All applications will continue to undergo Nationwide’s standard affordability checks. The lender said the updated approach aims to support responsible lending while providing greater flexibility for remortgage customers.
For borrowers who do not need additional funds and are simply switching their mortgage, the existing policy remains in place, allowing loans up to 6.5 times income and up to 95% loan-to-value.
The lender previously introduced similar enhanced affordability measures for homebuyers in December 2024, enabling those purchasing a new property to access higher borrowing limits on longer-term fixed rate deals.
Mortgage affordability in the UK has gradually improved in recent months, driven by falling interest rates and new regulatory guidance that prompted lenders to ease stress tests.
“The ability to borrow enough can be a barrier when people look to remortgage, even when they can demonstrate a clean payment history,” said Henry Jordan, director of home at Nationwide Building Society.
“With our Helping Hand for first-time buyers, as well as the enhanced affordability for home movers and now for those looking to remortgage, we are demonstrating that the country’s second largest lender remains committed to supporting all borrowers across the mortgage market.”
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