Did you know that the average first-time buyer is now 34 years old? With rising property prices and an increasing cost of living, it’s becoming harder than ever for many to step onto the property ladder. Saving for a deposit feels like an uphill battle for many, leading to smaller deposits and a longer wait to buy a home.

However, there’s hope! Some lenders have recognised this challenge and are making strides to support first-time buyers. Traditionally, most lenders will cap borrowing at 4.49x income, but we’ve seen some exciting changes. Certain lenders are now offering up to 5.5x income for buyers, and Nationwide has raised the bar further, offering up to 6x income!

What Does This Mean in Real Terms?

If you’re a sole applicant earning £30,000, you could now borrow up to £180,000. If you’re applying with a joint income of £50,000, that borrowing power jumps to £300,000. And it gets even better – this increased affordability is still available with up to 95% loan-to-value (LTV), where many lenders still cap affordability at 4.49x income.

Why This Matters

This enhanced affordability can open up more options for first-time buyers. Instead of being limited to a one-bedroom flat, you may now be able to afford that two-bedroom property you had your heart set on. It broadens your search parameters, making it quicker and easier to find your ideal home.

Who Qualifies?

This offer is exclusive to first-time buyers – for now. It will be interesting to see if other lenders follow suit to help stimulate the housing market. Nationwide’s definition of a first-time buyer is someone who hasn’t owned or held a mortgage in the past three years – not just those who have never owned a home.

If you’re a first-time buyer or know someone who’s looking to buy their first home, now could be the perfect time to explore these new opportunities. For more information and friendly, professional, and independent mortgage advice, get in touch today.

Let us help you get one step closer to owning your dream home!

Please note that any criteria and affordability quoted is based on what is available today and are subject to change at any time, any lending is subject to credit score and underwriting.

Ready to Explore Your Mortgage Choices?

Contemplating the idea of  a Joint Borrower Sole Proprietor Mortgage? Before you embark on this financial journey, it’s crucial to assess the advantages and potential drawbacks thoroughly. While this mortgage avenue can offer an enticing path to homeownership, understanding its intricacies is key. To delve deeper into your needs and explore your options, get in touch with Oakwood Independent Mortgage Consultants:

Phone: 01202 587 555

Email: dean@oakwoodimc.com