Nationwide’s Helping Hand Mortgage

In today’s expensive property market it is increasingly difficult for first time buyers to step on the property ladder. Many lenders’ loan to income ratio is restricted to 4.5 times to 4.75 times your salary, which is a big struggle to those who do not have a higher income or a bigger deposit to save for their first property purchase.

For example a couple with a joint income of £60,000 would be able to borrow a maximum of 4.75 times of their income = £285,000 plus the deposit of around 10 % which makes total purchase price of £285000 + £28500 = £313,000.

But with Nationwide Helping Hand mortgage first time buyers are eligible to borrow a little more than the normal loan to income ratio while meeting the necessary criteria.

With the  help of nationwide helping hand mortgage, borrowers with the joint income of £60,000 could borrow up to £330,000 + deposit of £28,500 = £358,500.

The boost could be very helpful in the current higher property price market.

What is Helping Hand Mortgage?

Nationwide launched First time buyer helping hand mortgage in 2021. This helps around 40,000 first time buyers to climb the property ladder.

• With Nationwide helping hand mortgage first time buyers can borrow up to 5.5 times the income.
• The mortgage term is fixed for 5 years, and 10 years if first-time buyers can borrow up to 95 % loan to value.
• The mortgage is available to only first-time buyers with minimum 5% deposit and can not be used on any affordable home scheme like shared ownership or right to buy.
• The helping hand mortgage offers a £500 cash back incentive towards the legal work charges after the purchase is complete.
• Borrowers can overpay up to 10% loan amount in each year without incurring an Early Repayment Charge.

What is Extended Helping Hand Mortgages?

After a successful response  from helping hand mortgage, Nationwide offer a big boost for  first time buyers by introducing an extended helping hand mortgage.

• From 24^th Sep mortgage borrowers can borrow upto 6 times of their income .
• The mortgage will be offer on 5- and 10-years fixed term.
• Minimum 5% deposit is required.

The extended helping hand mortgage will allow the affordability issue faced by many first-time buyers. By introducing mortgages 6 times of  your income Nationwide becomes the first high street bank which offers competitive rates at a 5% deposit.

With the help of Nationwide extended helping hand mortgage someone with an income of £60,000 could borrow £360,000 plus the deposit of 5 %. That gives a massive 33 % push to first time buyers compared to Nationwide’s standard lending of 4.5 times.

What are the Benefits of Helping Hand Mortgage?

The helping hand mortgage can be seen as a great benefit for those who want a little more borrowing to purchase their first home. The advantages of helping hand mortgages are as follows.

Income Multiples:

Traditional mortgage gives 4.5 to 4.75 times of  your income, but the helping hand mortgage can be up to 6 times  of your income for first time buyers.

Lower Deposit:

First time buyer needs only 5% deposit to purchase first home.

Cash Back:

 £500 cash back is offered towards the legal cost of the first purchase.

Property Types:

These mortgages are acceptable on houses and flats too.

Better Rates:

Offers  attractive rates with 5 % deposit.

Bigger Loan Size:

Max loan offer is £750,000 for 90-95% LTV.

Increase Affordability:

 With helping hand mortgage first time buyers could afford more expensive property for their income.

Some of the important factors you need to know

The helping hand comes with its benefits but some of the factors which need careful consideration are below:

Fixed Term:

These mortgages are offered on 5 years and 10 years term only. You have to be sure about a long term fixed rate mortgage in the current climate.

Loan Affordability:

Make sure the total loan amount is manageable over the fixed term.

Who is Eligible for Helping Hand Mortgage?

Only First-Time Buyers:

Helping hand mortgage is only available to first time buyers. If they are joint applicants, then none of them should have owned a property in the last 3 years.

Employed Clients Only:

Those who are in employed roll are eligible for the helping hand mortgage. Self employed clients cannot apply for the helping hand mortgage.

Affordable Home Scheme:

Helping hand scheme is not available for those who are looking to purchase a property via using affordable homes such as shared ownership and right to buy.

What documents are needed for Nationwide first-time buyer mortgage?

Valid ID Proof:

The  Bank will require your valid ID proof such as a passport or UK driving license.

Income Proof:

You will need  3 months of payslips and proof of any additional income like bonus income in order to verify the income.

Address Proof:

The Bank will need your current address proof such as a utility bill or a bank statement.

Deposit Proof:

Bank statements to show the available deposit amount towards the property purchase.

How can MariannaFS can help first time buyers with nationwide helping hand mortgage?

Having an experienced mortgage broker like MariannaFS on your first property purchase can make things a lot easier. As an Independent mortgage advisor firm we can compare mortgage deals across the market with no bias toward any bank and help you to choose the right one for your circumstances.

MariannaFS offer fee free mortgage advice which means you get five-star quality service without paying broker fees. From the Decision in principal to the mortgage offer and liaising with estate agent to solicitors we can assist you with your property purchase.

Don’t take our word for it, instead read our clients feedback about their experience.

Nationwide Mortgage Rates for First Time Buyer.

Nationwide offers very competitive rates for first time buyers. To secure the better rates many factors play an important roll, such as deposit amount for example. The loan to value ratio will determine the rates available to you and the income multiple you will get. Having a longer-term fixed mortgage of 5 years or more will help to get better rates. Why not check the Nationwide latest rates on our tool and get in touch for fee free mortgage advice?

FAQs:

How does Nationwide helping hand mortgage work?

With Nationwide Helping Hand, first time buyers could borrow up to six times their income. That’s up to 33% more than other banks can offer. The minimum deposit is 5% of the LTV. The term offer by Nationwide is  5 year fixed rate mortgage..

Does Home mover can get Nationwide Helping Hand Mortgage?

Nationwide helping hand mortgage is design for first time buyers only those who has a employed income. Currently, helping hand mortgage is not available for self-employed first-time buyers. Home movers do not benefit form helping hand mortgage.

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