Nationwide, the UK’s largest building society, has made a significant change to its mortgage lending rules, allowing some customers to borrow substantially more than before. The new policy means that eligible borrowers could now access up to six times their annual income, an increase from the previous limit of 5.5 times. For many buyers, this adjustment could open the door to purchasing larger or more expensive homes, particularly at a time when affordability pressures remain a key concern in the housing market.
Under the updated rules, new Nationwide customers must earn at least £75,000 as a single buyer or £100,000 as a couple to qualify for the higher borrowing cap. Existing customers with a Nationwide mortgage, however, are not subject to any minimum income requirement, giving them immediate access to the higher lending limit. The change is available for mortgages with deposits as low as five per cent, making it accessible to a wide range of borrowers, including home movers and those looking to remortgage. Previously, lending at six times income was only available for first-time buyers through Nationwide’s Helping Hand mortgage scheme.
The impact of this change is notable. A couple earning £100,000 between them could now borrow up to £600,000, a £50,000 increase from the previous maximum of £550,000. Meanwhile, a single borrower with an annual income of £75,000 could see their borrowing limit rise from £412,500 to £450,000, an increase of £37,500. The exact amount a borrower can access will also depend on other factors, such as their existing outgoings, credit history, and Nationwide’s affordability assessments. While the higher limits provide greater purchasing power, borrowers should consider the increased monthly payments and interest costs before committing to a larger mortgage.
Nationwide reported strong demand for higher borrowing last year. In 2025, the number of first-time buyers taking mortgages at or above five times their income increased by 57 per cent compared with 2024. The number of loans at or above 5.5 times income also grew more than fivefold. This trend reflects a growing appetite among borrowers to access higher mortgage limits, particularly amid falling interest rates and improved affordability conditions.
The decision follows guidance from the Financial Conduct Authority (FCA), which advised lenders not to restrict access to mortgages that are otherwise affordable as interest rates declined. The changes were also supported by Chancellor Rachel Reeves, who loosened financial regulations to allow lenders to extend larger home loans. Previously, rules implemented after the 2008 financial crisis meant that loans exceeding 4.5 times a borrower’s income could make up no more than 15 per cent of a bank’s mortgage book. The regulatory relaxation, combined with Nationwide’s new policy, now allows a greater proportion of borrowers to benefit from higher lending limits.
Nationwide has previously updated its mortgage stress tests, which estimate a borrower’s ability to manage repayments at higher interest rates. These adjustments demonstrated that borrowers could potentially access larger loans while remaining within affordability thresholds. Other lenders have also expanded their lending multiples: HSBC allows Premier Banking customers to borrow up to 6.5 times their income, while April Mortgages has introduced deals enabling loans up to seven times a borrower’s salary.
Henry Jordan, Nationwide’s group director of mortgages, emphasised that the changes extend support beyond first-time buyers. “Our latest announcement ensures that home movers and remortgage customers can access higher borrowing limits,” he said. “It reflects Nationwide’s commitment to supporting borrowers across all parts of the market, adapting to the realities of today’s housing environment.”
Mortgage experts have welcomed the move, noting that it addresses the challenges faced by buyers constrained by income multiples rather than monthly payments. By allowing more borrowers to access higher limits, Nationwide is helping people achieve their homeownership goals and adapt to the competitive housing market. With continued adjustments to interest rates and mortgage deals, the higher lending limits are likely to attract renewed interest from both first-time buyers and existing homeowners considering moving or remortgaging.
Overall, Nationwide’s decision marks a significant development for UK mortgage lending. By extending six-times income borrowing to a broader range of customers, it provides greater flexibility, increased buying power, and the potential for many to move into larger or more expensive properties than previously possible. Borrowers, however, should remain mindful of the financial responsibilities associated with larger loans, ensuring that higher borrowing aligns with their long-term affordability and financial goals.
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