How To Get A Bigger Mortgage If You’re A First Time Buyer

First Time Buyers Can Now Get A Bigger Mortgage with Just 5% Deposit

With ever increasing house prices, affordability can be a big issue for many First time Buyers. It certainly doesn't help that most lenders restrict what a FTB can borrow to 4.5 times your sole or joint incomes.

The Problem

When the lower deposit mortgages were brought back to the market, it posed a higher risk to the lenders. One way to help reduce their risk was to impose a Loan to Income Cap (LTI) on the mortgage so they could ensure First time Buyers weren't over committing themselves on their first mortgage.

It seems a bit unfair, as home movers are capped at 4.75 times their income, with some lenders going up to 5.5x.A Helping Hand

One lender though, Nationwide, is on the side of the First Time Buyer. They understand in the current market (with higher house prices) it's really difficult to get on the property ladder.

They are therefore offering First Time Buyers up to 5.5x their joint incomes with their Helping Hands Mortgage.

For a couple earning £50,000 this means they could borrow £275,000 compared to the standard £225,000 with almost all other lenders. That's an extra £50,000 that will go a long way to improving their buying power when looking at their first home.

The Conditions

There are a number of conditions and restrictions that need to be met to qualify for this mortgage.

It's ONLY available to Employed First time buyers. So, if you're one of the many self-employed, unfortunately you can't get this offer.

For sole applicants you must be earning at least £31,000 pa and for joint applicants, £50,000 pa.

Its only available on selected 5 & 10 year fixed rates

It is only available up to 95% on houses (not new builds). For flats, it's restricted to 85% and for new builds it's 85% for houses and 75% for flats.

There are a number of other conditions that must also be met, so for full details of the scheme, or to check your affordability and get a quote please call us on 0330 22 333 10


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