Lender to also offer up to six times’ income on new builds via Helping Hand scheme
Nationwide Building Society will increase the maximum loan-to-value (LTV) on new build houses to 95% starting June 26, aiming to provide more support to the housebuilding sector and prospective homeowners.
Alongside the LTV rise, the lender will allow first-time buyers to use its Helping Hand mortgage product for new build purchases at the full 95% LTV. The move positions Nationwide as the only major UK lender currently offering borrowing up to six times income at this level.
Helping Hand enables eligible borrowers to access a higher income multiple than the standard 4.5 times, potentially increasing their borrowing power by a third. Since its launch in 2021, the scheme has assisted more than 57,000 buyers, including over 26,000 between April 2024 and March 2025.
The lender is making the changes in response to a decline in new build mortgage transactions, which have dropped by about a third compared to 2022 — the final year of the government’s Help to Buy scheme. Rising deposit requirements and affordability pressures have been key factors behind the slowdown.
Nationwide will also lift the maximum LTV for new build flats to 85%, aiming to broaden access across the new homes sector.
To support buyers through potential construction delays, the society will extend its mortgage offer period for new builds from six to nine months. While most completions occur within six months, the longer window is designed to give buyers and brokers added certainty and reduce the need for reapplication.
Although Helping Hand has contributed to Nationwide’s leading position among first-time buyer lenders, the Bank of England’s Financial Policy Committee imposes a cap on lending above 4.5 times income, limiting it to 15% of a lender’s new loans. The lender said it will continue to monitor volumes to remain compliant with this rule.
“A strong housebuilding sector drives growth, and as the UK’s biggest building society, we’re backing it with a trio of positive changes,” said Henry Jordan (pictured directly above), director of home at Nationwide Building Society.
“Not only are we increasing lending up to 95% 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.”
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