Nationwide Building Society has implemented a new lending rule effective today, lowering the eligible income threshold for joint applicants seeking to borrow up to six times their salary from £100,000 to £75,000. The change applies to home movers and those remortgaging with additional borrowing, both for sole and joint applicants. Existing Nationwide customers can access the six-times-income multiple when moving home, porting a mortgage, or borrowing more, with no minimum income level required.
Brokers Welcome the Change
Stephen Perkins, managing director of Yellow Brick Mortgages, said: "Nationwide lowering the income threshold to access its higher borrowing limits is good news for many borrowers looking to move home or remortgage with additional borrowing, particularly those who may previously have fallen just short of qualifying." He added that mortgage affordability is not static, and lenders regularly adjust criteria, meaning borrowing capacity can change even if personal circumstances remain the same.
Perkins cautioned, however, that borrowing more is not automatically the right answer and borrowers should choose a mortgage that leaves room in their budget if circumstances change. He described the move as increasing consumer choice in the mainstream market, particularly for financially responsible households seeking a home that better suits long-term needs.
Positive but Cautious Reactions
Emma Jones, managing director of Whenthebanksaysno.co.uk, welcomed the change, stating: "This is a positive move from Nationwide and one that will be welcomed by many borrowers who have previously found themselves just short of the borrowing they need." She emphasised that the focus is not on encouraging overstretching but on recognising that many households with stable incomes have been unfairly restricted by affordability models despite demonstrating they can manage their finances comfortably.
Harry Goodliffe, director of HTG Mortgages, described the change as "refreshing at a time when lenders are busy increasing rates." He noted that expanding access to six times income will help more buyers and movers get the borrowing they need, particularly in expensive parts of the country. However, he highlighted a broader issue: house prices have outpaced earnings, forcing lenders to stretch income multiples to keep homeownership within reach.
Further Industry Commentary
Justin Moy, managing director at EHF Mortgages, called the move "a helpful tweak of criteria for those looking to borrow a little more than normal, bringing Nationwide in line with a number of lenders who offer similar opportunities." He noted that the change is subject to a normal affordability assessment, so borrowers with large commitments will see their mortgage opportunity reduced below six times income.
Richard Davidson, mortgage advisor at onlinemortgageadvisor.co.uk, said he had advised many borrowers who would benefit from the new criteria. He commented: "Lowering the qualifying income for six times lending from £100,000 to £75,000 should open the door for a good number of home movers and remortgage customers who were previously boxed out. I've sat across from plenty of couples in that income bracket who simply couldn't stretch to the property they needed under the old rules."
Samuel Mather-Holgate, managing director of Mather and Murray Financial, added: "This is genuinely good news for borrowers who have been trapped by the affordability squeeze. Dropping the joint income threshold from £100,000 to £75,000 opens the six-times-income door to far more mainstream households, not just higher earners." He said for home movers, it could be the difference between staying stuck and getting the space they need; for remortgagers raising extra funds, it adds useful breathing room. He cautioned that six times income is a serious commitment and rates, bills, and job security still matter, but called the move a welcome, practical step that recognises today's market realities.
