From today, Tuesday 12 August, homeowners who are looking for a new mortgage deal may benefit from enhanced affordability when applying to remortgage to Nationwide. That means that Nationwide will apply a different affordability calculation when eligible applicants take out a five or 10-year fixed rate product, which may enable them to borrow more.
The enhanced criteria will be available for both employed and self-employed applicants. Sole applicants will need a minimum income of £40,000 and joint applicants a minimum of £70,000 to benefit from this enhanced affordability check.
All applications will continue to be subject to a robust affordability assessment to ensure Nationwide continues to lend responsibly. This change provides higher affordability for eligible customers who’ll have a track record of mortgage payments and greater payment security through a rate fixed for at least five years.
In addition to the new enhanced affordability, those looking to remortgage but who don’t require any additional borrowing will continue to be able to borrow up to 6.5x income, up to 95 per cent Loan-to-Value.
How much more can be borrowed?
The following examples are based on two applicants (examples illustrative and the amount that can be borrowed will be dependent on an applicant’s individual circumstances):
| Remortgage with additional borrowing | Like-for-like remortgage |
| Product: 5- or 10-year fixed rateIncome: £70,000Term: 20 yearsMax loan before: £280,700Max loan after: £314,300Uplift: £33,600LTI before: 4xLTI after: 4.5x | Product: 5- or 10-year fixed rateIncome: £50,000Term: 40 yearsMax loan before: £308,900Max loan after: £325,000Uplift: £16,100LTI before: 6.2xLTI after: 6.5x |
This follows on from the same change Nationwide made in December 2024 for homeowners looking to purchase their next property. That also meant those looking to buy their next home could benefit from enhanced affordability to potentially borrow more when taking out a five or 10-year fixed rate product.
Henry Jordan, Nationwide’s Director of Home, said: “The ability to borrow enough can be a barrier when people look to remortgage, even when they can demonstrate a clean payment history. We’re pleased to be able to help them by making this change, which should put Nationwide front of mind for those wanting a new mortgage deal.
With our Helping Hand for first-time buyers as well as the enhanced affordability for home movers and now for those looking to remortgage, we are demonstrating that the country’s second largest lender remains committed to supporting all borrowers across the mortgage market.”
