Could you do with a helping hand?
In April 2021 the Nationwide came out with a fab product for the First Time Buyer market called “Helping Hand”
How?
Well, they created a £1 billion fund specifically for those who believe they cannot borrow enough for a home.
Let’s delve further shall we…
First of all, the “Helping Hand” mortgage product allows you to borrow up to 5.5 x your salary not bad right. Most mortgage lenders will loan you a lend amount of up to 4.5x on an applicant’s income.
They also made their fixed loan repayment terms longer allowing you to pay back a fixed amount without being affected by interest rises for 5-10 years – hooray!
So, how does The Nationwide’s Helping Hand Mortgage product work?
The 5.5 x your annual income borrowing rate has made it possible for people to meet today’s higher purchase prices for property. This kind of lending capacity only use to be offered for individuals earning £60K plus per year. So, Nationwide have really opened up the market to allow access for a better lending capacity for first time buyers on lower incomes.
How about if you’re self-employed can you apply for the Nationwide Helping Hand mortgage?
Sadly no. This also applies to people who are buying in a joint capacity where one of you is employed.
The question on everyone’s lips…What is the Helping Hand eligibility criteria?
For a Helping Hand mortgage with Nationwide, you need to:
Be a first-time buyer. Nationwide require you not to of had a mortgage for 3 years to fall into their criteria of “First Time Buyer”.
If applying jointly, both applicants need to be classed as first-time buyers.
A 10% deposit
Agree to a 5 or 10 year fixed rate mortgage.
Not be self-employed or using an affordable home ownership scheme such as Help to Buy, shared ownership, Right to Buy or Forces Help to Buy.
Knowing what mortgage product is best for you can be daunting as a First Time Buyer and that is why we offer a free advisory service to guide you through the journey every step of the way.