Nationwide for Intermediaries has increased the maximum loan-to-income it offers on like-for-like remortgages, making it easier for borrowers to switch lenders to secure a better deal.
Given the current rising cost of living, this change aims to support borrowers who are either looking to remortgage to get a better rate or those who are on a variable rate deal and want to fix their mortgage payments. By increasing the maximum loan-to-income, Nationwide says it is also likely to benefit mortgage prisoners who, despite a clean payment history, are now struggling to meet current affordability criteria in the market.
For all remortgage applications made to Nationwide from Thursday, 12 May that don’t require any additional borrowing, the Society is increasing the maximum loan-to-income it will accept to 6.5x income up to the existing 90% loan-to-value limit.
Aaron Strutt, product director at Trinity Financial, says: "Some mortgage lenders offer more generous income multiples when borrowers remortgage to them, but they are not normally as generous as 6.5 times salary. Nationwide is keen to do more business, but it is also trying to help borrowers get off expensive standard variable rates."
Applications will continue to be subject to Nationwide’s affordability assessment to ensure the Society continues to lend responsibly.
Call Trinity Financial on 020 7267 9399 to secure a faster mortgage offer or book a consultation