Nationwide Building Society has announced a significant change to its mortgage lending rules, allowing some borrowers to take out substantially larger home loans. As a result of the update, eligible customers could now borrow up to £50,000 more than was previously possible.
The UK’s largest building society has increased its income multiple, meaning both new and existing customers may now be able to borrow up to six times their annual salary. This is an increase from the previous cap of 5.5 times income. The move sets Nationwide apart from many other high street lenders, which typically restrict borrowing to around 4.5 times a borrower’s earnings.
The change could make it easier for buyers to afford a larger or more expensive property, particularly in areas where house prices remain high. However, eligibility for the higher borrowing limit depends on income levels and whether the applicant is a new or existing Nationwide customer.
New applicants will need to meet minimum income thresholds to qualify. Single buyers must earn at least £75,000 a year, while joint applicants will need a combined income of £100,000. In contrast, customers who already hold a Nationwide mortgage will not be subject to a minimum income requirement, potentially giving them greater flexibility when moving home or remortgaging.
Nationwide has also confirmed that the increased borrowing is available on mortgages with deposits as low as 5 per cent, widening access for buyers who may not have large savings. Previously, borrowing at six times income was largely limited to first-time buyers through the lender’s Helping Hand mortgage. The new rules extend this option to home movers and those looking to remortgage as well.
In practical terms, the changes could make a notable difference to borrowing power. A couple earning £100,000 between them could now borrow up to £600,000, compared with £550,000 before. Meanwhile, a single borrower earning £75,000 could see their maximum loan rise from £412,500 to £450,000.
Despite the higher limits, Nationwide stressed that all applications will still be subject to affordability checks. Factors such as household spending, existing financial commitments, credit history and the ability to pass stress testing will continue to play a key role in determining how much a borrower can actually access.
The lender has also warned that while larger loans may help buyers secure a property, they come with higher monthly repayments and increased interest costs over time. Borrowers are encouraged to ensure they are comfortable with the long-term financial commitment before taking on a bigger mortgage.
Nationwide said demand for higher income multiples has been growing. In 2025, the building society reported a 57 per cent rise in first-time buyer mortgages at or above five times income compared with the previous year. It also recorded more than a five-fold increase in lending to customers borrowing at 5.5 times their salary or higher.
This latest move follows several other changes Nationwide has made to expand borrowing capacity. Last year, it adjusted its stress rates — the higher interest rates used to test whether borrowers could still afford repayments if rates were to rise. At the time, the lender said this allowed some home movers earning £75,000 to increase their borrowing by nearly £30,000 on certain fixed-rate deals.
Nationwide’s approach reflects wider shifts across the mortgage market. The Financial Conduct Authority has recently advised lenders to avoid unnecessarily limiting access to affordable mortgages as interest rates begin to ease. The regulator’s guidance has prompted several banks and building societies to revisit their lending criteria.
The changes have also been supported by Chancellor Rachel Reeves, who relaxed post-financial crisis rules that restricted the proportion of high-income-multiple loans lenders could issue. Previously, mortgages above 4.5 times income were capped at 15 per cent of a lender’s total mortgage book.
Henry Jordan, Nationwide’s group director of mortgages, said the regulatory changes had transformed the outlook for buyers. He explained that the updated policy would extend similar support beyond first-time buyers to those moving home or remortgaging, reinforcing Nationwide’s commitment to serving all parts of the housing market.
Nationwide is not alone in offering higher income multiples. HSBC allows some Premier Banking customers to borrow up to 6.5 times their earnings, while newer lender April Mortgages launched products last year offering loans of up to seven times income.
Mortgage brokers have broadly welcomed Nationwide’s decision. Nicholas Mendes of John Charcol said expanding six-times-income lending beyond first-time buyers was a positive development, particularly for borrowers limited by income multiples rather than monthly affordability. He added that the move highlights how lenders are adapting to the realities of today’s housing market.
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