FINANCE
a lot less. Nonetheless, you have a very strong chance of being able to borrow more in total than you could a year ago. You will also want to bear in mind that higher debt also means higher risk if you were to lose your job, house prices crash, or you became unwell and couldn’t work. If, after sensible consideration, you decide that you really do want or need to borrow every penny you can, then it’s best to consult a mortgage broker who will know exactly which lenders are likely to look most favourably on you. Rachael Hunnisett, Director of Mortgage Distribution, April Mortgages, adds, “The mortgage landscape has shifted significantly in the last 12 months alone. Affordability criteria has broadened, lender flexibility has improved, and higher LTV options, up to 100%, exist that many first time buyers simply don’t know about. That knowledge gap is the difference between a distant dream and having the keys to your first home in your hands. The biggest risk right now is buyers ruling themselves out before they’ve even explored their options, based on outdated assumptions.”
Not available to the self-employed or for Shared Ownership purchases, Nationwide says a couple with a joint income of £50,000 and a 5% deposit could now borrow up to £300,000, with a fixed rate mortgage for five years (5.25% with a £1,499 fee or 5.34% with zero fees). Henry Jordan, Nationwide’s Group Director of Mortgages, said, “The Government and regulatory changes last year have been a game changer for first time buyers.” Another large loan to income option is West Brom Building Society, which offers 5.75 times income to borrowers earning above £60,000 and five times to those earning £40,000 to £60,000, while HSBC will go up to 5.5 times income for buyers with a joint income of £55,000 and a 10% deposit. An important thing to remember with all of these options are the weaselly words “up to”. Just because a lender advertises a large multiple, doesn’t mean you will necessarily be offered it. All of your outgoings – car finance, credit card payments, childcare, pension payments, travel costs and even TV subscriptions and takeaway habits – will be put under the microscope to make sure that the lender is happy that you can make the monthly repayments; so despite the headline figures you may find your are offered
EXPERT COMMENT
Over recent years, there has been a rise in the proportion of borrowers taking on a mortgage with a high loan-to-income ratio (LTI). Official data from the Financial Conduct Authority (FCA) of gross advances by income multiples during Q4 2025 revealed that proportion of lending to a single borrower at four times income rose to its highest levels since 2021. As may be obvious, securing a mortgage can be more of a challenge for those going alone, which means any relaxation to loan-to-income rules, such as with building societies like Nationwide with its Helping Hand mortgage at six times income, can make all the difference. It is essential that new buyers in particular feel supported, but affordability strains are evident – support and innovation from lenders will be vital to keep the market moving. Seeking advice from a broker is wise to keep abreast of the latest deals and get invaluable advice on affordability constraints. The strain of high payments will make borrowers consider a longer-term deal, such as for 35 years or 40 years to make initial payments more manageable. However, this means paying more interest overall, so making overpayments where possible to reduce the debt and mortgage term is wise.
Rachel Springall , Finance Expert, Moneyfacts
First Time Buyer August/September 2026 119
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