Nationwide Building Society will raise its maximum loan-to-value (LTV) ratio for new build houses to 95% from 26 June, a move expected to provide a timely boost to both first-time buyers and the UK’s struggling housebuilding sector.
In a further sign of its growing commitment to housing delivery, the mutual will also allow borrowers to access its flagship Helping Hand proposition at the full 95% LTV, making Nationwide the largest lender in the UK to offer up to six times income at this level of borrowing.
The Helping Hand scheme, introduced in 2021, enables eligible first-time buyers to borrow significantly more than under standard affordability criteria, raising income multiples from 4.5 to six.
Over 57,000 customers have used the scheme since its launch, with more than 26,000 taking advantage of it between April 2024 and March 2025 alone.
AFFORDABILITY CHALLENGES
Nationwide’s move comes amid continued government pressure on the financial sector to support both housing delivery and affordability, with industry leaders increasingly calling for reforms to unlock demand and help more first-time buyers onto the ladder.
Henry Jordan, director of home at Nationwide, says that the changes were designed to meet both short-term affordability challenges and long-term supply goals.
He adds: “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.”
Mortgage-backed purchases of new build homes have dropped by nearly a third compared with 2022, the final full year of the government’s Help to Buy scheme.
Nationwide’s latest move is seen as a direct response to this decline, aiming to address persistent affordability and deposit barriers faced by first-time buyers.
The mutual is also increasing the maximum LTV on new build flats from 75% to 85%, and extending mortgage offer periods from six to nine months – a change that reduces the risk of borrowers having to reapply if construction delays push completions beyond the typical timeframe.
INDUSTRY REACTION
Industry figures have welcomed the announcement as a vote of confidence in the new homes sector.
Adrian MacDiarmid, new homes director at Barratt Redrow, says: “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.”
Ceri Pearce, UK sales and marketing director at Taylor Wimpey, agrees, describing the policy shift as a “strong commitment to supporting the housing market and responding to the underlying demand for new homes.”
