Published: 1 August 2025
In recent years, many people have found it tough to buy their first home. Often this may have been because the amount of income lenders would consider for a higher loan to income mortgage was more than they earned.
We want to do our bit to fix this. So, we’ve made a big change to our mortgage affordability that could make a difference for some first time buyers.
What’s changed?
We’ve lowered the minimum household income needed to borrow more than 4.5 times annual income from £40,000 to £30,000.
We’re one of the few lenders to reduce to this amount.
What does this mean for you?
The changes could make a big difference to help first time buyers with a good credit history who want to get on the housing ladder.
The lowered minimum income level of £30,000 applies to all our residential lending, including 5% deposit mortgages. It also applies to our Income Plus range, which is designed to support first time buyers.
How much could first time buyers now borrow
Under the changes, single or joint applicants earning £30,000 a year may be able to borrow £165,000* with an Income Plus mortgage from us, compared to £134,700 before. That’s a difference of £30,300 (usual standard affordability checks and eligibility criteria will apply).
It would make a home costing £173,000 potentially within reach to buy with a 5% deposit - up from £141,000.
Your property could be repossessed if you don't keep up your mortgage repayments.
What else are we doing to help first time buyers?
Helping more people to buy a home, generation after generation, is part of our DNA. We’re doing lots to support first time buyers, including:
- Our attractive shared ownership mortgage range which enables buyers to purchase a shared ownership property
- Connecting to Experian Boost which could help would-be borrowers making regular payments increase their credit score
- The Home Deposit Saver account which lets people put money away to help fund a house deposit
Matt Bartle, Director of Mortgages and Savings, explains more
“We’re always looking for new ways to help bring the dream of home ownership closer for more borrowers. These changes are designed to help people on lower incomes who may have struggled to be offered a mortgage previously.
We’ve had permission from the Bank of England to make the changes, and we carry out detailed checks to make sure borrowers can realistically afford their mortgage repayments.”
Want to find out more?
Check out our range or speak to a mortgage broker.
*Based on someone earning £30,000 salary borrowing 95% LTV at 5.5 times loan-to-income ratio with an Income Plus mortgage compared to the previous maximum loan to income level of times 4.49. Income Plus mortgages are only available for first time buyers.
Mortgages are subject to eligibility, status and financial standing. Applicants must be 18 years or over.
This article is not advice and you should seek independent financial or legal advice if needed.
Your property could be repossessed if you don't keep up your mortgage repayments.
