Nationwide is increasing the maximum loan-to-value (LTV) available for those looking to purchase a new build house to 95 per cent on 26 June, as it ramps up support for the housebuilders and the government’s housing ambitions.
And, in a further boon to first-time buyers, prospective homeowners will also be able to use Nationwide’s Helping Hand to make their new build house purchases, up to the maximum LTV. Nationwide is the largest mortgage provider to allow lending of up to six times income at 95 per cent LTV, as it continues to demonstrate why it is the number one lender to first-time buyers.
Nationwide’s Helping Hand mortgage boost gives first-time buyers the ability to borrow up to six times income at up to 95 per cent loan-to-value. It enables them to borrow a third more versus Nationwide’s standard high LTV lending at 4.5 times income. Helping Hand has supported more than 57,000 customers since its launch in 2021 and has proven even more popular recently, with more than 26,000 customers using Helping Hand between April 2024 and March 2025.
Mortgage new build sales in 2024 were around a third lower than in the last full year of the government’s Help to Buy scheme in 2022. Deposit requirements and affordability challenges have played a major part in this and Nationwide’s latest changes will support the new build sector by tackling them.
New build flats:
Nationwide’s support extends to the entire new build sector because, at the same time, Nationwide will also be increasing the maximum loan-to-value available for applications involving new build flats to 85 per cent.
New build offer periods:
Nationwide will also be increasing its offer period for new build properties from six months to nine months. Although the vast majority of new build purchases complete within a six-month period, this change will give customers and brokers greater certainty and flexibility during the construction process. The longer offer period reduces the risk of needing to reapply for the mortgage in the event the property takes longer to complete.
Helping Hand and high loan-to-income (LTI) cap:
Helping Hand has already proven extremely popular and is a key reason why Nationwide made more loans to first-time buyers than any other lender last year. However, the amount of lending that can be done at or above 4.5 times income is capped to no more than 15 per cent of their total qualifying loans by the Bank of England’s Financial Policy Committee LTI flow limit. Nationwide is continually having to manage its lending relative to that limit and these positive changes to its maximum LTVs for new build properties will add volume which may require further action to ensure Nationwide remains within the limit.
Henry Jordan, Nationwide’s Director of Home, said: “A strong housebuilding sector drives growth, and as the UK’s biggest building society, we’re backing it with a trio of positive changes. Not only are we increasing lending up to 95 per cent LTV on new build properties, but we are also offering first time buyers the ability to borrow up to six times’ income through our Helping Hand proposition on new builds. In addition, we’re extending our mortgage offers to nine months – recognising the construction delay that can occur with new build properties and giving greater peace of mind to applicants.
"These changes have the potential to meet the strong first-time buyer demand for new builds that has gone unmet since the end of Help to Buy, whilst also stimulating the construction sector to build more homes with the confidence that buyers can get a mortgage on them. However, without a review of the high loan to income limit, this potentially significant change for first-time buyers, the construction sector and growth more broadly, will be constrained in terms of impact.”
Adrian MacDiarmid, of Barratt Redrow plc said: “Nationwide Building Society has, for many years, been a valued, trusted partner of Barratt Redrow in supporting our customers who aspire to homeownership. These latest changes are a testament to their commitment to the market, and we believe will help more buyers on this journey. Improving affordability and access to home ownership helps underpin housebuilders’ confidence to invest in order to deliver the homes that this country needs. We look forward to continuing to work with Nationwide Building Society to support our mutual customers.”
Ceri Pearce, UK Sales and Marketing Director, Taylor Wimpey said: “Nationwide’s latest mortgage enhancements are a welcome step at a time when desire for home ownership is strong but affordability continues to challenge some customers - especially first time buyers. The increase in the maximum loan to value on new build houses to 95 per cent will make it easier for buyers to secure a mortgage with a smaller deposit, and the extension of mortgage offers to nine months will give borrowers greater certainty and flexibility during the construction process. These changes reflect a strong commitment to supporting the housing market and responding to the underlying demand for new homes.”
