In a significant development for the UK housing market, Nationwide Building Society has confirmed a major extension to its high-income multiple mortgage offerings. The mutual lender has now expanded its 6x income lending criteria to include both home movers and those seeking to remortgage, through its established Helping Hand scheme.
Enhanced Borrowing Criteria Details
The bank announced this week that it will now lend up to six times income to both new and existing customers moving home or remortgaging, with loans available up to 95 per cent loan-to-value. This represents a notable expansion of the lender's previous offerings and follows similar moves by competitors including Barclays, which made comparable adjustments in November last year.
To qualify for these enhanced borrowing terms, new customers moving home or remortgaging to Nationwide will need to meet specific minimum income thresholds. Sole applicants must demonstrate a minimum annual income of £75,000, while joint applications require a combined income of at least £100,000. However, in a significant departure, existing Nationwide customers will face no minimum income requirements when accessing these enhanced borrowing multiples.
Industry Response and Risk Concerns
The announcement has generated mixed reactions from mortgage professionals across the country. Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, acknowledged the positive aspects while highlighting limitations.
"This is a great step in the right direction," Perks commented. "Affordability remains a substantial stumbling block for many borrowers, as escalating housing costs force people to stretch their finances to the maximum. However, the criteria raise questions - outside London, individuals earning £75,000 and couples on £100,000 aren't typically those hardest hit by affordability challenges. Beyond the capital and other high-value areas, this doesn't necessarily assist the borrowers who need support most urgently."
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, expressed more direct concerns about potential risks associated with high loan-to-value mortgages.
"When restrictions on lending above 4.5 times income were lifted, the justification was that some lenders would offer more while others wouldn't, maintaining overall market percentages below desired thresholds," Perkins explained. "However, as anticipated, increasing numbers of lenders want to compete to help customers borrow more, creating a snowball effect that could eventually lead to unaffordable mortgages becoming widespread. We must avoid repeating the circumstances that contributed to the 2008 financial crisis."
Historical Context and Market Trends
This expansion comes against a backdrop of changing borrowing patterns. In 2025, Nationwide reported a 57 per cent increase in first-time buyer mortgages taken at or above five times income compared with 2024 figures. Additionally, the lender witnessed an over five-fold increase in loans to borrowers accessing 5.5 times their income or higher.
Patricia McGirr, founder of Burnley-based Repossession Rescue Network, offered measured commentary on the risks involved.
"This approach doesn't constitute reckless lending, but it serves as an important reminder that high income doesn't automatically equate to low risk," McGirr noted. "Borrowing six times income can help maintain momentum in the housing market, particularly for home movers and remortgagers who might otherwise find themselves stuck. However, stretched affordability only remains sustainable while interest rates, employment conditions, and personal circumstances remain favourable. Even high earners can encounter difficulties rapidly when mortgage deals reset or situations change unexpectedly."
Target Demographic and Competitive Landscape
Aaron Strutt, product and communications director at London-based Trinity Financial, identified the primary target demographic for these products.
"This initiative appears aimed particularly at younger professionals seeking larger properties rather than traditional starter flats," Strutt observed. "While a six-times salary multiple might seem substantial, many borrowers may not need the full amount - they might require just over 5.5 times income to secure their desired property. Nationwide pioneered 6x salary mortgages for first-time buyers among major lenders, and the scheme has proven remarkably popular."
Strutt further noted that while Barclays and HSBC don't charge premium rates for their income-stretch mortgages, unlike some competitors who impose higher rates or require longer-term fixes, they maintain stricter minimum income requirements. Other lenders including Metro Bank and Bank of Ireland have recently eased their criteria to offer similar 6x salary products.
Market Implications and Future Considerations
Riz Malik, director at Southend-on-Sea-based R3 Wealth, suggested the expansion could help bring certain borrowers back to the market.
"Lenders expanding their criteria demonstrates commitment to the housing market," Malik stated. "What we need now is for confidence to return among borrowers, which may prove challenging for those considering extending their borrowing commitments."
McGirr offered concluding thoughts on the broader implications: "This approach does little to address wider affordability problems across the housing market and should never be presented as a comprehensive solution. The danger lies in normalising higher income multiples instead of building financial resilience. Responsible lending isn't primarily about how much someone can borrow during favourable conditions, but rather how well they can manage when financial pressures inevitably arise."
The expansion of high-multiple lending represents a significant development in mortgage availability, offering enhanced opportunities for certain borrowers while raising important questions about long-term affordability and risk management in an evolving housing market.
