First time buyers can now borrow up to 5.5 times their earnings with Nationwide

The competition to purchase property has never been fiercer and, as a first time buyer, it can be very difficult to compete with those who are already on the property ladder.

To help those looking to buy their first home, Nationwide has launched a new Helping Hand scheme, with which first time buyers can borrow up to 5.5 times their earnings to take that first step onto the property ladder. 

While times have been tough enough for first time buyers in recent years, the pandemic and the uncertainty surrounding these times certainly hasn't helped matters.

First, 90% mortgage offers became virtually non-existent, then with the introduction of the Stamp Duty holiday came a huge rise in property prices and a market more competitive than the nation has ever seen before. All of this together has made the prospect of making a viable offer on a home extremely difficult for first time buyers. 

How does Nationwide's Helping Hand scheme for first time buyers work?

Nationwide's new support scheme, Helping Hand, allows first time buyers to borrow up to 5.5 times their earnings during a time when asking prices are high. It's with this offer that the lender hopes to make the market more accessible and to restore faith in the purchasing process. 

Helping Hand is set to run for up to 1 year, with a £1bn budget backing it. The scheme will only be available to first time buyers who have a deposit of at least 10% and who plan to take out a fixed rate mortgage for 5-10 years. However, for new build purchases, a deposit of at least 15% will be required.

While many other lenders typically offer up to 4.5 times a buyer's salary, Nationwide has confirmed that the standard stress tests carried out on first time applicants will also be adjusted to ensure individuals are able to afford the repayments of a mortgage offer they are given. 

Research from the Institute for Fiscal Studies shows that while the average price of first time buyer properties has risen by 41% over the past two decades, the average income has risen by just 18%. It's statistics like these that, according to Nationwide's Director of Mortgages, Henry Jordan, have encouraged the lender to find ways in which to help make the market more attractive and accessible to first time buyers going forward. 

The importance of good conveyancing for first time buyers

With the Stamp Duty holiday reaching its final stages and with lenders appearing to be more confident about the property market, the coming months could prove to be much more fruitful for first time buyers. If you're looking forward to purchasing your very first home and are eagerly awaiting the right time to do so, now is the perfect time to do your research and find the right professionals to help you along the way. 

Conveyancers play a vital role in any property purchase. As qualified experts in the field, they can make sure you receive your chosen property as expected, without any hidden issues, restrictions or requirements. Your conveyancer will work with the seller's own solicitors to make sure everything is as it should be from a legal standpoint before the purchase is completed.

The market is extremely busy at the moment and when demand is high, the process can take a little longer. This makes it all the more important to ensure you secure the help of a reliable conveyancer to organise your property purchase.

A professional conveyancer will not cut corners to save time, reduce their workload or push one purchase through to make a start on the next. They will take as much time as is necessary to tick all the boxes and ensure everything is as it should be, all to the highest standard. A good conveyancer will do what's right and within their responsibilities to make sure your very first property purchase goes through with as few hiccups as possible. 

Get specialist property advice and support for buying your first home

For expert legal advice and guidance throughout your first property purchasing journey, get in touch with our professional residential conveyancing solicitors. 

Our team can cover all aspects of conveyancing, from reviewing contracts to desktop searches to the final completion of the purchase. 

For an initial consultation with one of our residential conveyancers, please to get in touch at enquiries@stephenrimmer.com or by calling us on 01323 644222

Alternatively, you can visit our offices at 28 - 30 Hyde Gardens Eastbourne East Sussex BN21 4PX.