Mortgages At Six Times' Income For First-Time Buyers
Mortgage lenders' attempts to lure in first-time buyers have stepped up with the UK's biggest building society allowing some to borrow more.
The Nationwide said that from Tuesday, new borrowers could request a mortgage up to six times their income with a 5% deposit.
But it would only be available for those taking out a five or 10-year fixed-rate deal.
With rates expected to fall, some may only want a loan with interest fixed for a shorter term. The uptake is expected to be concentrated in London and south-east England.
Applicants will still have to meet relatively strict affordability criteria, which are assessed individually.
Lenders also face their own regulated controls on lending to riskier borrowers, brought in after the financial crisis of nearly 20 years ago which saw certain banks - which many accused of unnecessarily risky lending - being bailed out.
While the standard level of borrowing for first-time buyers is a loan of up to 4.5 times' income, Nationwide has allowed some to borrow 5.5 times - a move followed by some other major providers.
Now, it will step that level up to six times - but only among first-time buyers with an individual income of at least £30,000 a year, or a couple earning at least £50,000 a year.
It is also planning to reduce some mortgage interest rates slightly and increase the maximum total loan available.
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