If it’s been a while since you worked out how much you could borrow, you might be pleasantly surprised at how much has changed, says Kay Hill
New research from Mortgage Advice Bureau has revealed that half of would-be first time buyers are unaware that their borrowing power has improved considerably in recent months – to the extent that some borrowers could now access £40,000 more than they could a year ago. The same study also reported that nearly three-quarters of renters hoping to buy a first home in 2026 had no idea that 95% mortgages were now readily available.
It was a decision in July 2025 by the Bank of England’s Prudential Regulation Authority that has made life easier for many first time buyers to borrow what they need. Previously, mortgage lenders were restricted by rules that allowed just 15% of their mortgages to exceed 4.5 times salary. The change last year abolished that restriction, and over the past few months lenders have become more and more relaxed about income multiples that were once set in stone.
So if you’ve been turned down in the past for your first mortgage, or haven’t dared to apply because you need more than four times your income to get on the housing ladder, then it might be time to take another look at what is available – and work out if it’s both affordable and sensible for your situation.
Rachel Geddes, Strategic Lender Relationship Director at Mortgage Advice Bureau, said, “For many first time buyers, the biggest challenge isn’t just saving for a deposit – it’s knowing whether homeownership is actually within reach. What this research shows is that many aspiring buyers may still be making decisions based on outdated assumptions around their borrowing potential, as lenders continue to introduce greater flexibility into the market.”
At the time of writing, the largest advertised multiple from a high street lender was from NatWest, which recently extended its offer to 6.5 times joint salary. However, the product is only available to applicants with a household income of £150,000 and a 25% deposit. April Mortgages is more flexible – it offers seven times sole or joint income over £50,000 for buyers with a 15% deposit taking out a 10-year fixed rate mortgage (currently with a rate of 5.9%).
At Nationwide, last year saw a five-fold increase in loans to first time buyers at or above 5.5 times income, and the building society now lends up to six times income to first time buyers through its Helping Hand mortgage. Not available to the self-employed or for Shared Ownership purchases, Nationwide says a couple with a joint income of £50,000 and a 5% deposit could now borrow up to £300,000, with a fixed rate mortgage for five years (5.25% with a £1,499 fee or 5.34% with zero fees). Henry Jordan, Nationwide’s Group Director of Mortgages, said, “The Government and regulatory changes last year have been a game changer for first time buyers.” Another large loan to income option is West Brom Building Society, which offers 5.75 times income to borrowers earning above £60,000 and five times to those earning £40,000 to £60,000, while HSBC will go up to 5.5 times income for buyers with a joint income of £55,000 and a 10% deposit.
An important thing to remember with all of these options are the weaselly words “up to”. Just because a lender advertises a large multiple, doesn’t mean you will necessarily be offered it. All of your outgoings – car finance, credit card payments, childcare, pension payments, travel costs and even TV subscriptions and takeaway habits – will be put under the microscope to make sure that the lender is happy that you can make the monthly repayments; so despite the headline figures you may find your are offered a lot less. Nonetheless, you have a very strong chance of being able to borrow more in total than you could a year ago.
You will also want to bear in mind that higher debt also means higher risk if you were to lose your job, house prices crash, or you became unwell and couldn’t work. If, after sensible consideration, you decide that you really do want or need to borrow every penny you can, then it’s best to consult a mortgage broker who will know exactly which lenders are likely to look most favourably on you.
Rachael Hunnisett, Director of Mortgage Distribution, April Mortgages, adds, “The mortgage landscape has shifted significantly in the last 12 months alone. Affordability criteria has broadened, lender flexibility has improved, and higher LTV options, up to 100%, exist that many first time buyers simply don’t know about. That knowledge gap is the difference between a distant dream and having the keys to your first home in your hands. The biggest risk right now is buyers ruling themselves out before they’ve even explored their options, based on outdated assumptions.”
Kay Hill
Kay has been a professional journalist since her teens, working for local and regional newspapers, magazines and now websites as well. Kay work across a number of fields, including architecture, design, personal finance and the housing market – Kay enjoys making the complicated things in life a little easier to understand.As a consultant for PR company Building Relations, Kay has written for developers including Barratt London, Dandara, MTVH and Annington.
Kay enjoys the beauty of language, the structure of grammar and the process of condensing thousands of words of research and interviews into 1,200 carefully chosen words that will leave the reader a little more informed than when they started.
