Nationwide has eased affordability calculations for remortgagers who apply for five- or 10-year fixed-rate loans, which may allow them to borrow up to an extra £33,600.

The new criteria are available for employed and self-employed applicants. Sole applicants will need a minimum income of £40,000 and joint applicants a minimum of £70,000. 

The mutual says: “This change provides higher affordability for eligible customers who’ll have a track record of mortgage payments and greater payment security through a rate fixed for at least five years.” 

It adds that the new rules for remortgagers who do not require any additional borrowing will continue to be able to borrow up to 6.5 times income, at up to 95% loan to value. 

The lender outlines how its new rules will work: 

Remortgage with additional borrowing  

Product: Five- or 10-year fix 

Income: £70,000 

Term: 20 years 

Max loan before: £280,700 

Max loan after: £314,300 

Uplift: £33,600 

Loan to income before: 4 times income

LTI after: 4.5 times income 

Like-for-like remortgage  

Product: Five- or 10-year fix 

Income: £50,000 

Term: 40 years 

Max loan before: £308,900 

Max loan after: £325,000 

Uplift: £16,100 

LTI before: 6.2 times income 

LTI after: 6.5 times income 

A range of lenders, such as Santander, Newcastle Building Society and Precise, have lifted their LTI ratios after the Financial Policy Committee changed its rules to allow firms to underwrite more high loan-to-value lending in July.   

Nationwide director of home Henry Jordan says: “The ability to borrow enough can be a barrier when people look to remortgage, even when they can demonstrate a clean payment history.  

“We’re pleased to be able to help them by making this change, which should put Nationwide front of mind for those wanting a new mortgage deal.”