Mortgage lenders step up competition with Nationwide offering first time buyers up to 6x salary with a 5% deposit
October 4th, 2024
Competition between mortgage lenders has been on the increase in recent months with lenders offering new buyers the best deals.
UK house prices rose 2.2% in the year to July 2024, although it has been suggested that this is down to a shortage of available properties rather than demand from buyers. With relatively few buyers, providers are trying to get a piece of a small pie and they are particularly keen to attract first-time buyers.
Nationwide, the UK’s largest lender, has been offering some of the largest income multiple for home loans. On the 24th September, it announced new borrowers could request a mortgage up to six times their income, with a 5% deposit. This offer is only available for people taking out a five or 10-year fixed-rate deal. With interest rates expected to fall, it is likely that a loan with interest rates fixed for a shorter term, will be the preferred option.
With lenders facing rigorous controls on lending, applicants will have to meet quite strict affordability criteria. First-time buyers looking to take up this offer will need to have an individual income of at least £30,000 a year, or a couple at least £50,000 a year.
