Lenders Ease Income Rules to Help First-Time Buyers

First-Time Buyers Get a Welcome Boost

Good news if you’re saving for your first home: more UK lenders are making it easier to borrow bigger amounts by relaxing income rules. For years, the standard was around 4.5 times your salary — but that’s changing fast. Let’s take a look at who’s stepped up and what it means for you.

Nationwide: Borrow Up to 6× Your Income

Nationwide Building Society has raised eyebrows (and hopes!) by letting first-time buyers borrow up to six times their income. That’s a huge jump compared with the old 4.5× cap. Add in a deposit as low as 5%, and it suddenly makes owning a home in pricier areas much more realistic. They’ve even backed this up with lower rates to sweeten the deal.

Yorkshire, Accord & Skipton Lower the Bar

Yorkshire Building Society and Accord Mortgages now allow borrowers earning £50,000+ to access 5× income mortgages — down from £75,000 before. That’s a big win for many middle-income buyers. Skipton has gone a step further, reducing its minimum income threshold for these bigger loans to £40,000, making the market more accessible to a wider group of first-time buyers.

HSBC and First Direct Join In

Not wanting to be left behind, HSBC and First Direct are now offering 5.5× income mortgages for first-time buyers. Combined with competitive interest rates, it means applicants who might have struggled to borrow enough before could now make that first purchase a reality.

Accord Opens Doors Wider

Accord Mortgages has also made a really positive change for people on benefits. They’ll now count up to 60% of Universal Credit payments as income (so long as one applicant is working). They’ve also lifted the Loan-to-Value (LTV) cap to 90% for some foreign nationals without indefinite leave to remain. It’s another sign lenders are trying to include groups who’ve often found it harder to get on the ladder.

Why Are Lenders Doing This?

Part of the shift comes from the Bank of England, which recently gave lenders more room to offer higher-income multiples — as long as they stay within safe limits. In simple terms, lenders can now approve more mortgages that go beyond the old 4.5× rule.

What This Means for You

Bigger borrowing power – especially if you’re in a higher-cost area.
More flexibility – lower income thresholds open the door to more people.
Fairer lending – recognising different sources of income, like benefits.

Of course, affordability checks still apply, and it’s important to make sure any mortgage fits comfortably within your budget.

The Bottom Line

Nationwide: up to 6× income.
Yorkshire, Accord & Skipton: 5× income at lower salary thresholds.
HSBC & First Direct: 5.5× income.
Accord: includes some benefits as income.

For first-time buyers, this is one of the most positive shifts we’ve seen in years. With more lenders relaxing the rules, it could be the right time to explore your options — and a good mortgage broker can help you find the deal that fits best.

Ready to take the next step?

If you’re a first-time buyer or simply want to explore your mortgage options, our team at Mortgage Pro Sussex is here to help. We’ll compare deals across the whole market and give you clear, personal advice tailored to your circumstances. Call us on 01903 951200 or get in touch online