FINANCE
Mega mortgages
If it’s been a while since you worked out how much you could borrow, you might be pleasantly surprised at how much has changed, says Kay Hill
Bureau, said, “For many first time buyers, the biggest challenge isn’t just saving for a deposit – it’s knowing whether homeownership is actually within reach. What this research shows is that many aspiring buyers may still be making decisions based on outdated assumptions around their borrowing potential, as lenders continue to introduce greater flexibility into the market.” At the time of writing, the largest advertised multiple from a high street lender was from NatWest, which recently extended its offer to 6.5 times joint salary. However, the product is only available to applicants with a household income of £150,000 and a 25% deposit. April Mortgages is more flexible – it offers seven times sole or joint income over £50,000 for buyers
New research from Mortgage Advice Bureau has revealed that half of would-be first time buyers are unaware that their borrowing power has improved considerably in recent months – to the extent that some borrowers could now access £40,000 more than they could a year ago. The same study also reported that nearly three-quarters of renters hoping to buy a first home in 2026 had no idea that 95% mortgages were now readily available. It was a decision in July 2025 by the Bank of England’s Prudential Regulation Authority that has made life easier for many first time buyers to borrow what they need. Previously, mortgage lenders were restricted by rules that allowed just 15% of their mortgages to exceed 4.5 times
EXPERT COMMENT
Our research shows there are still genuine pockets of value for rst time buyers, particularly for those with an open mind who are willing to be exible on location and property type. With ongoing cost of living pressures and wider economic uncertainty, it’s completely understandable that some people are feeling cautious. But there are opportunities out there, and for many buyers, that exibility can make a real difference. What matters most is nding a mortgage that works for your own budget and circumstances, not just today, but over the long term. Lower deposit options, such as our new £5k deposit mortgage, could help some people get on the ladder years earlier than they might expect. Speaking to a mortgage expert early can help. It gives you a clearer picture of what you can comfortably afford, and the con dence to make choices that feel right for you, whatever the wider market might be doing. Don’t wait until you think you’ve saved enough or found you dream home. Explore your options – It’s important to know what support is available. A mortgage expert will show you options you might not have considered and guide you on ways to build up the funds quicker. Schemes like Shared Ownership and low-deposit mortgages can make buying more affordable than you might think.
salary. The change last year abolished that restriction, and over the past few
with a 15% deposit taking out a 10-year fixed rate
months lenders have become more and more relaxed about
mortgage (currently with a rate of 5.9%). At Nationwide,
income multiples that were once set in stone. So if you’ve been
last year saw a five-fold increase in loans to first time buyers at or above 5.5 times income, and the building society now lends up to six times income to first time buyers through its Helping Hand mortgage.
turned down in the past for your first mortgage, or haven’t dared to apply because you need more than four times your income
to get on the housing ladder, then it might be time to take another look at what is available – and work out if it’s both affordable and sensible for your situation. Rachel Geddes, Strategic Lender Relationship Director at Mortgage Advice
Amanda Bryden , Head of Mortgages, Lloyds
118 First Time Buyer August/September 2026
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