‘Crappy’ move or responsible idea? Brokers split over changes to Nationwide’s sole applicant mortgage terms

Mortgage brokers are split after Nationwide announced it was increasing the minimum income required for sole mortgage applicants to qualify for its Helping Hand scheme.

The new minimum will be £40,000 – up from £35,000.

The bank says it needs to ensure it remains within the regulatory limit for lending to customers borrowing at higher loan-to-income levels.

The decision has been praised by Graham Cox, director at Bridging Hub, who said Nationwide had made a “prudent” choice.

“Someone on a £35,000 salary doesn’t have a lot of discretionary spending wiggle room in this day and age, so borrowing at a high 5-6 times income on what is a relatively modest wage is asking for trouble,” he said in comments provided to Money by the Newspage news agency.

Others were not such big fans of the announcement…

Ken James, director at Contractor Mortgage Services, said the changes would sweep the rug from under the feet of prospective first-time buyers.

“If you are a sole applicant on £35,000 a year, at six times this is only £210,000, then with a potential 5% deposit the max the client would be looking at buying would be an approximate £221,000 property,” he said.

“I don’t think that the regulatory limits would have been pushed too far on these figures.”

“This is a crappy move that will hurt the first-time buyer market.”
Ken James

SJ Mortgages director Jack Tutton agreed with James, saying the move was a “kick in the teeth” to those trying to buy on their own.



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