Nationwide Building Society is to offer first-time buyers loans of up to six times their income as the battle for mortgage customers ratchets up further.
New borrowers from the building society can apply from tomorrow but only for five-year or ten-year loans with a 5% deposit.
Applicants have to meet relatively strict affordability criteria to qualify for the loans.
Nationwide borrowers will need an individual income of at least £30,000 a year, or at least £50,000 a year for a couple.
Bespoke lenders can offer six times income but this comes with higher rates of interest, said mortgage brokers.
Lloyds Banking Group PLC (LSE:LLOY), the UK’s main mortgage provider, also recently relaxed its income threshold to 5.5 times annual household income for meeting the criteria.