"A strong housebuilding sector drives growth, and as the UK’s biggest building society, we’re backing it with a trio of positive changes"
- Henry Jordan - Nationwide
Nationwide Building Society is increasing the maximum loan-to-value (LTV) available on new build houses to 95% from 26 June, as part of a wider package of changes aimed at supporting the new build market and boosting access to homeownership.
The lender will now allow first-time buyers to use its Helping Hand mortgage offer at the new maximum LTV, enabling borrowing of up to six times income. This move makes Nationwide the largest mortgage provider to combine 95% LTV lending with high-income multiples on new build houses.
Nationwide is also increasing the maximum LTV for new build flats from 75% to 85%, and will extend the mortgage offer validity period for new builds from six months to nine months. The lender said these steps are designed to support buyers and developers alike, particularly as affordability and deposit barriers continue to weigh on the market.
Mortgage activity in the new build sector dropped by around one-third in 2024 compared to the final full year of the government’s Help to Buy scheme in 2022. Nationwide’s latest changes aim to bridge that gap by reducing upfront cost burdens and improving financing flexibility.
“A strong housebuilding sector drives growth, and as the UK’s biggest building society, we’re backing it with a trio of positive changes," comments Henry Jordan, director of home at Nationwide. "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.”
He continued, “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. However, without a review of the high loan-to-income limit, this potentially significant change for first-time buyers, the construction sector and growth more broadly, will be constrained in terms of impact.”
The Helping Hand product has supported over 57,000 buyers since launching in 2021, including 26,000 between April 2024 and March 2025. The scheme allows eligible applicants to borrow a third more than standard high LTV lending, which is typically capped at 4.5 times income.
However, the Financial Policy Committee's flow limit restricts the proportion of lending at or above 4.5 times income to 15% of a lender’s total qualifying loans. Nationwide noted it may need to manage lending volume in response to this cap, particularly given the additional uptake expected from its LTV enhancements.
Industry representatives welcomed the changes. Adrian MacDiarmid, of Barratt Redrow plc, stated: “Nationwide Building Society has, for many years, been a valued, trusted partner of Barratt Redrow in supporting our customers who aspire to homeownership. These latest changes are a testament to their 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. We look forward to continuing to work with Nationwide Building Society to support our mutual customers.”
Ceri Pearce, UK sales and marketing director at Taylor Wimpey, also welcomed the measures. “Nationwide’s latest mortgage enhancements are a welcome step at a time when the desire for home ownership is strong but affordability continues to challenge some customers, especially first-time buyers,” Pearce said. “The increase in the maximum loan-to-value on new build houses to 95% will make it easier for buyers to secure a mortgage with a smaller deposit, and the extension of mortgage offers to nine months will give borrowers greater certainty and flexibility during the construction process. These changes reflect a strong commitment to supporting the housing market and responding to the underlying demand for new homes.”
