It will also raise the maximum loan-to-value available for applications involving new build flats to 85 per cent.
And the mutual is increasing its offer period for new build properties from six months to nine months.
First-time buyers will also be able to use Nationwide’s Helping Hand mortgage to buy a new build house, up to the maximum LTV.
What is the Helping Hand mortgage?
The Helping Hand mortgage boost gives first-time buyers the ability to borrow up to six times income at up to 95% loan-to-value. It enables them to borrow a third more versus Nationwide’s standard high LTV lending at 4.5 times income. Helping Hand has supported more than 57,000 customers since its launch in 2021.
Mortgage new build sales in 2024 were around a third lower than in the last full year of the government’s Help to Buy scheme in 2022. Deposit requirements and affordability challenges have played a major part in this and Nationwide said that its latest changes will support the new build sector by tackling them.
Your Mortgage Awards 2024/25: winners revealed
Sponsored by Your Mortgage Awards
Henry Jordan, Nationwide’s director of home, said: “A strong housebuilding sector drives growth, and as the UK’s biggest building society, we’re backing it with a trio of positive changes.
“Not only are we increasing lending up to 95 per cent 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.”
Adrian MacDiarmid, of Barratt Redrow plc, added: “These latest changes are a testament to Nationwide’s commitment to the market, and we believe will help more buyers on this journey. Improving affordability and access to home ownership helps underpin housebuilders’ confidence to invest in order to deliver the homes that this country needs.”
