More Lenders Slash Income Barriers
Article taken from our July Newsletter
First-time buyers across the country are set to benefit as a growing number of high street lenders follow Skipton Building Society’s lead in lowering the income required to borrow more against your salary.
Just days after Skipton announced it would cut its minimum income threshold for higher loan-to-income mortgages from £50,000 to £40,000, Nationwide and Yorkshire Building Society have rolled out similar reforms 1. The changes are set to make it easier for thousands more people to step onto the property ladder, as the market responds to calls from the Prudential Regulation Authority to boost support for new buyers.
Nationwide Expands High-Income Lending
Nationwide, Britain’s largest building society, now allows sole first-time buyers earning just £30,000 to access its flagship Helping Hand mortgage deals. Previously, the income requirement stood at £35,000. For joint applicants, the minimum combined income has dropped from £55,000 to £50,000. These mortgages allow borrowing up to six times your salary, subject to affordability checks, opening the door for many who would previously have fallen short.
Henry Jordan, director of home at Nationwide, said that these changes are expected to help at least 10,000 extra first-time buyers this year. He added that the building society acted quickly in response to the regulator’s announcement, confident it will make a real difference to buyers facing high house prices 2.
Yorkshire Building Society Follows Suit
Yorkshire Building Society and its specialist lending arm, Accord Mortgages, have also reduced the minimum income needed for their high loan-to-income deals. Borrowers now need an income of only £50,000 to access five-times income mortgages, down from £75,000. These products are now available at up to 95 per cent loan-to-value, giving a significant boost to those with smaller deposits3.
Earlier this year, Yorkshire also eased its interest-rate stress test, allowing customers to borrow more while still meeting responsible lending standards4.
Why Are Lenders Making These Changes?
The shift comes after the Bank of England’s Prudential Regulation Authority relaxed the rules for lenders. Previously, high loan-to-income lending was capped at 15 per cent of new mortgages. Now, as long as lenders meet strict overall lending standards, they can apply to lend more at higher income multiples. The move is aimed at helping first-time buyers, who have seen average house prices rise far faster than wages in recent years.
Mortgage advisers are welcoming the news, with many saying the reforms will make homeownership more realistic for those who might have been stuck renting otherwise. However, all lenders insist that proper affordability checks will remain, and urge buyers to seek advice to ensure they are not overstretching themselves 5.
What Does This Mean for You?
If you have been struggling to save a large deposit or have just missed out on borrowing enough in the past, these new rules could make a real difference. Whether you are a single buyer or purchasing as a couple, it is now easier to access higher loan amounts with a lower income, provided you can demonstrate you can afford the repayments.
Mortgage brokers say that with more lenders offering flexible deals and higher income multiples, now is an excellent time for first-time buyers to review their options and get professional advice.
The Bottom Line
The high street mortgage market is opening up for first-time buyers, with Skipton, Nationwide and Yorkshire Building Society leading the way. These changes could help thousands more people achieve their dream of homeownership this year.
If you are considering buying your first home or want to know how much you could borrow, now is the time to speak to Russell Green for expert guidance.
How to Contact Russell Green
Tel 01934 442023
Email russell@swmortgages.com
Complete a form via our website www.westonmortgagesonline.com
Our initial mortgage consultation is free and with no obligation; should you proceed to an application, there will usually be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances, but will range from £ 290 to £490, and this will be discussed and agreed with you at the earliest opportunity.
Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
References:
Mortgage Finance Gazette. (2025). Skipton BS lowers high LTI thresholds to £40,000 from £50,0000 – Mortgage Finance Gazette. [online] Mortgage Finance Gazette. Available at: https://www.mortgagefinancegazette.com/market-news/skipton-bs-lowers-high-lti-thresholds-to-40000-from-500000-21-07-2025/ [Accessed 23 Jul. 2025].
Nationwide Building Society Media Centre. (2025). Nationwide expands first-time buyer mortgages support after regulator relaxes high loan-to-income rules. Available at: https://www.nationwidemediacentre.co.uk/news/nationwide-expands-first-time-buyer-mortgages-support-after-regulator-relaxes-high-loan-to-income-rules [Accessed 23 Jul. 2025].
Mortgage Solutions. (2025). Yorkshire BS enhances FTB support following LTI limit changes from regulator. [online] Mortgage Solutions. Available at: https://www.mortgagesolutions.co.uk/news/2025/07/15/yorkshire-bs-enhances-ftb-support-following-lti-limit-changes-from-regulator/ [Accessed 23 Jul. 2025].
Financial Reporter (2025). YBS and Accord enhance high-LTI offering following limit changes. Financial Reporter. Available at: https://www.financialreporter.co.uk/ybs-and-accord-enhance-high-lti-offering-following-limit-changes.html? [Accessed 23 Jul. 2025].
Reuters (2025). UK banks can increase riskier mortgage lending, BoE says.Available at: https://www.reuters.com/sustainability/boards-policy-regulation/uk-banks-can-increase-riskier-mortgage-lending-boe-says-2025-07-09/ [Accessed 23 Jul. 2025].
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