More borrowing power emerges for homebuyers
Getting a mortgage has long felt like a numbers game, and one of the most important figures lenders scrutinise is loan-to-income, or LTI. Simply put, this is how much you can borrow relative to what you earn. For years, regulatory pressure kept these multiples tight. But the landscape is shifting, and Nationwide's latest move signals a growing willingness among lenders to be more flexible.
The building society has widened its lending criteria to allow applicants to borrow up to six times their annual income. The move applies to homemovers and existing customers looking to remortgage with additional borrowing, provided they earn £75,000 or more individually or jointly. For Nationwide's current borrowers, the threshold disappears entirely: existing customers can access the six-times multiple with no minimum income requirement when moving home, switching their mortgage, or borrowing extra funds.
This matters because it directly affects how much house you can actually afford. With the UK average house price sitting at £270,080 and annual house price growth at 3.8%, many buyers have felt squeezed between rising property costs and rigid lending rules. A six-times income multiple provides meaningful additional borrowing capacity for those who qualify.
Who benefits most from this change
Self-employed borrowers deserve particular attention here. Nationwide has brought self-employed applicants into the six-times bracket, putting them on equal footing with employed workers. This is significant. Self-employed individuals often face stiffer lending criteria because income verification is more complex. Bringing them into the same multiple as salaried employees removes a genuine barrier many have encountered.
Existing Nationwide borrowers stand to gain substantially too. If you've been with the lender for years, you're now in a stronger position to move home or access additional borrowing without the £75,000 income floor that applies to new customers. For those who took out a Nationwide Helping Hand mortgage when the scheme launched in 2021, this timing is particularly helpful. These deals are reaching maturity, and broader lending criteria make it easier to secure fresh terms whether you're relocating or staying put.
Nationwide isn't alone anymore
What's worth understanding is that Nationwide is part of a wider industry trend. The number of lenders offering six-times loan-to-income multiples has quadrupled over the last 12 months. Twenty lenders have now crossed that threshold, meaning borrowers have genuine choice when shopping around. This competition naturally puts pressure on rates and terms, which benefits consumers.
The shift reflects changing regulatory attitudes and risk appetite among lenders. After years of conservatism, there's growing confidence in higher lending multiples for borrowers with stable income and reasonable credit profiles. It's also a response to market pressure. With the average five-year fixed mortgage rate at 4.81% and two-year rates hovering at 6.6%, higher income borrowers need more flexibility to afford property in an expensive market.
What you should do if this applies to you
If you're an existing Nationwide customer or you earn £75,000 or more and are planning to move, this is worth exploring directly with the lender. Don't assume your previous mortgage application limits still apply. Lending criteria changes frequently, and what was possible two years ago may be different now.
Shop around, though. With 20 lenders now offering six-times multiples, comparing what's available across the market makes financial sense. Rates and terms vary considerably. Use online mortgage comparison tools, but also speak to a mortgage broker who can access deals beyond what's available on high street websites.
Be realistic about affordability regardless of how much you can borrow. With inflation at 2.8% and the Bank of England base rate at 3.75%, interest rates remain historically elevated. Borrowing the maximum amount available isn't always the wisest choice. Stress-test your finances by considering what happens if rates rise further or if your income changes. A mortgage is typically the biggest financial commitment you'll make, and borrowing comfortably within your means, rather than stretching to the maximum possible figure, is usually the better long-term strategy.
This expansion in lending criteria is genuinely positive news for those who qualify. It reflects a more competitive mortgage market and greater recognition that rigid lending rules don't suit everyone's circumstances. But as with all financial decisions, use the extra flexibility thoughtfully rather than automatically.