NATIONWIDE has made a big U-turn on “crazy” mortgage rules after it sparked fury from first-time buyers.
is lowering the amount solo applicants need to make a year in order to be accepted for its Helping Hand Mortgage.
The mortgage deal helps wannabe homeowners borrow up to six times their income.
This scheme lets those on lower wages buy houses in pricier areas, such as, with a smaller deposit.
The deal also allows customers to borrow 95% of the value of the property, meaning they would only need a deposit of 5%.
Buyers can then secure their home with one of Nationwide's five or 10-year deals.
But prospective owners were left outraged at the start when the for those looking to buy a home on their own.
It said solo applicants would only be approved for the deal if they made £40,000 a year, marking an increase of £5,000.
The move sparked fury from customers, who branded the move as “crazy”.
One person said: “Who the hell earns £40k as a single person these days, especially not many young people who will be first-time buyers.”
The bank said yesterday, April 8, that now solo applicants would once again only have to earn £35,000 to be accepted.
In a statement, it said: “Nationwideis today boosting support for single applicant first-time buyers by lowering the minimum income requirement on its Helping Hand back down to £35,000.”
Nationwide also asks that two people looking to secure a Helping Hand mortgage together have a combined income of £55,000.
This has not been increased, though, and has remained the same since the scheme opened.
Neither single nor joint applicants can be self-employed, and they cannot be using an affordable home ownership scheme such as shared ownership or Right to Buy.
MORTGAGE RATES COULD FALL
The news comes amid a challenging period for the UK's housing market.
Changes to stamp duty and the rising cost of living has meant buyers will continue to struggle in
To a tackle this, lenders have rolled out zero deposit mortgages –
Today there are 17 different no deposit mortgage options, with some requiring you to put a family member or friend down as a guarantor in case you are unable to make the payments.
To read more about this click on the link
In better news for borrowers, the fall out from has meant mortgage rates could drop.
Markets have predicted the will cut interest rates three times this year, from the current 4.5% to 3.75% by the end of 2025.
This prediction is based on the recent fall in Sonia swaps, which are used to forecast mortgage rates.
MPoweredwas the first to react, with lower rates on two, three and five-year fixed mortgages taking effect today.
For example, a two-year fix at 60% loan-to-value now starts at 4.05% with a £999 fee, or 4.29% with no fee.
Three-year fixes at the same loan-to-value start at 4.04% with a £999 fee, or 4.15% fee-free.
Five-year fixes begin at 4.14% with a £999 fee and 4.28% without.
