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The Independent
21 hours ago
- Business
- The Independent
Nationwide remortgage customers may be able to borrow more following change
Homeowners looking for a new five- or 10-year mortgage deal may benefit from enhanced affordability, enabling them to borrow more, Nationwide Building Society has announced. Nationwide said it will apply a different affordability calculation when eligible remortgage applicants take out a five- or 10-year fixed-rate product – which may enable them to borrow more. The enhanced criteria will be available for both employed and self-employed applicants. Sole applicants will need a minimum income of £40,000 and joint applicants a minimum of £70,000 to benefit from the enhanced affordability check, the building society said. Individual circumstances will vary and the amounts that can be borrowed will depend on the situation of the borrower. Nationwide said that, based on two applicants, those with a £70,000 income taking on additional borrowing with a five- or 10-year mortgage may potentially be able to borrow £33,600 more. This is based on certain circumstances, including a 20-year mortgage term. Many mortgage lenders have recently been making changes to help some people borrow more, following announcements from regulators, giving lenders more flexibility. All applications will continue to be subject to a robust affordability assessment, Nationwide said. It said the change provides higher affordability for eligible customers who will have a track record of mortgage payments and greater payment security through a rate fixed for at least five years. In addition to the new enhanced affordability, those looking to remortgage but who do not require any additional borrowing will continue to be able to borrow up to 6.5 times income, at up to 95% loan-to-value (LTV), the society said. Henry Jordan, Nationwide's director of home, said: 'The ability to borrow enough can be a barrier when people look to remortgage, even when they can demonstrate a clean payment history. We're pleased to be able to help them by making this change.'
Business News Wales
05-08-2025
- Business
- Business News Wales
Mrs Buckét Secures Major Cleaning Contract with Monmouthshire Building Society
Award-winning commercial cleaning company Mrs Buckét has been awarded the contract to clean most branches of Monmouthshire Building Society. The contract creates new jobs for the Swansea-based commercial cleaning company, as well as additional hours for some of its current staff. It has also of TUPE'd (Transfer of Undertakings (Protection of Employment)) two members of the Building Society's current cleaning staff, protecting their jobs and allowing them to join the Mrs Buckét workforce. Mrs Buckét will be cleaning Monmouthshire Building Society's 11 branches and agency offices at Brecon, Risca, Cardiff Queen Street, Handpost Newport, Caerleon Road Newport, John Frost Square Newport, Swansea, Cwmbran, Chepstow, Monmouth and Caldicot. This is the second financial services contract that Mrs Buckét has won in recent months, as it has also been appointed to clean a financial office in Cardiff. Rachael Flanagan, Mrs Buckét's CEO and founder, said: 'It is great to be working with Monmouthshire Building Society as it is a business that shares the same values as we do – working with and giving back to the communities in which we work. 'It is also great to be supported by this contract win by another successful Welsh business such as Monmouthshire Building Society – it has such a rich heritage in Wales. We look forward to working with the team closely in the coming months.' Mark Howell, Facilities Manager at Monmouthshire Building Society, said: 'We are all about supporting Welsh businesses and Mrs Buckét is the perfect example of what an entrepreneur with a vision and hard work ethic can achieve. 'We have been really impressed with the time and effort that the team has put into researching our needs as a business and ensuring that some of our housekeeping staff remain in post. Mrs Buckét's work in the community is also impressive and we look forward to forging social value partnerships with Mrs Buckét in the future.'
Daily Mail
14-07-2025
- Business
- Daily Mail
House prices are MORE affordable than 20 years ago - but they are still up to 9 times salary in some areas
House prices are more affordable on average than they were 20 years ago, according to the latest figures from Nationwide Building Society. This is based on the ratio comparing average incomes and average property prices. Between April and June this year, Nationwide says the average UK house price was 5.8 times the average annual salary of someone in full time work. This is marginally down on the same three month period in 2005 when the average house price was 5.9 times the average annual full time salary. Over the last 20 years, house prices have increased 73 per cent compared to earnings growth of 76 per cent over the same period. However, the current house price to earnings ratio is still above the long-run average of 4.8. These areas AREN'T more affordable Whether property has become more or less affordable will also greatly depend on where in the country someone lives. For example, in London, the house price to earnings ratio has risen from 7.1 to 9.2 over the past 20 years, which means property is less affordable in the capital. The surrounding outer metropolitan regions of London also saw a rise from 6.9 to 8. Meanwhile, the North has seen the most improvement, with a fall in average house price to earnings ratio from 5.4 in 2005 to 4 in 2025. This reflects the fact that house price growth has been the lowest there over this period. High house prices relative to earnings make it more challenging for prospective buyers to save for a deposit, particularly in London and the South East. Richard Donnell, executive director at Zoopla said: 'Future improvements to the house price to earnings ratio will vary depend on the region of UK and the headroom for house price growth. 'Home values have been unaffordable in Southern England for some time and remain so, which is why house prices are struggling to rise as a result of higher mortgage rates.' The other key factor in relation to affordability is interest rates and their impact on mortgage payments. Compared with 2005, mortgage payments have slightly decreased relative to take-home pay for a first-time buyer, according to Nationwide. Based on someone buying their first property with a 20 per cent deposit, average mortgage payments currently account for 34 per cent of take home pay, compared with 38 per cent in 2005. However, it's worth pointing out that affordability has deteriorated from a mortgage cost perspective over the past five years given the sharp rise in interest rates in 2022 and 2023. In July 2020 someone buying with a 20 per cent deposit could bag a five-year rate as low as 1.7 per cent. Now, most buyers are securing mortgage rates around 4 to 5 per cent. The lowest five-year fix for someone buying with a 20 per cent deposit is 4.15 per cent. Someone buying a property in 2020 with a £200,000 mortgage at 1.7 per cent with a 25 year repayment term would have been paying £818 a month. However, someone buying today with a £200,000 mortgage today and a 25 year term on a 4.015 per cent rate can now expect to pay £1,072 a month. Nationwide says the typical mortgage payments were 27 per cent of take home pay between April and June 2020, far less than the 34 per cent proportion today. Looking ahead, Nationwide says it expects a gradual easing in affordability constraints through a combination of falling interest rates and earnings outpacing house price growth. However, while the house price to earnings ratio suggests property isn't any less affordable on average than it was 20 years ago, it doesn't necessarily mean that getting on the ladder is as easy as it was 20 years ago. Jeremy Leaf, north London estate agent and a former Rics residential chairman argues that rising rental prices has made it harder for people to save a deposit towards buying their first home. 'What the house price-to-earnings ratio doesn't show is the impact of the rise in rents over that period - particularly in London and other cities,' said Leaf. 'That increase has made it more difficult for aspiring first-time buyers to save for deposits and resulted in the postponement of many moves. 'The sharp drop in transaction numbers following the ending of the stamp duty holiday last March showed the importance of financing those initial costs to first-time buyers in particular. 'In our offices, we have noticed how the demand for higher-priced properties in more favoured locations has struggled recently compared with less expensive areas.' He adds: 'Looking forward, that trend is likely to continue unless the government can improve for instance take-up in its 'Freedom to Buy' scheme by setting more generous terms than under the previous Mortgage Guarantee Scheme which would give a lift to the whole market.' How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
The Guardian
06-07-2025
- Business
- The Guardian
Anger as Nationwide refuses members a binding vote on boss's 43% pay hike
Nationwide is under fire for refusing to give members a binding vote on a controversial 43% pay rise for its chief executive, Debbie Crosbie, which could total up to £7m. Campaigners say it leaves the mutual's members with fewer rights than shareholders of listed UK banks and exposes a worrying 'loophole' in building society rules. Nationwide argues that after its £2.9bn takeover of Virgin Money Crobie's pay should compete with that offered by banks such as Lloyds and NatWest. However, the board is only offering members an 'advisory' vote at its annual general meeting (AGM) on 25 July, meaning there are no repercussions if they reject it. Large high street banks are required to hold a binding vote on their pay policies at least once every three years, under laws governing large businesses listed on the London Stock Exchange. If shareholders reject the policy, they have to revert to the old pay plan and put a revised pay deal to shareholders within 12 months. Nationwide could do the same, but said it is already going further than required under the Building Societies Act, which only requires binding votes for the election of board members. 'As part of our commitment to member engagement and transparency, Nationwide voluntarily puts the remuneration policy to the membership on an advisory basis at the AGM and we currently have no plans to change this approach,' a spokesperson said. While Nationwide has never held a binding vote on pay, it has also never proposed such a large renumeration package for its chief executive, which could result in a record payout worth up to £7m from current levels of £4.8m. That is close behind NatWest Group, which in April secured backing for a package worth up to £7.7m for chief executive Paul Thwaite. Luke Hildyard, the director of the High Pay Centre thinktank, described the situation as a 'loophole in the governance of building societies'. 'Mutuals are supposed to have a more collective approach to business than corporate banks, but while the banks are required to revise pay policies that are rejected by a majority of shareholders, and provide a response to the stock market if more than 20% vote against, building societies can in theory ignore their members.' 'The Nationwide case, where there may be significant discomfort with the huge pay out planned for the chief executive, highlights the need for the loophole to be closed,' he said. Crosbie's £7m pay deal has angered some members. 'I'm a Nationwide customer and didn't know about this? Please send me a voting form immediately,' one posted on X. 'Building societies are supposed to be the good guys. The apple has fallen far from the tree,' another claimed. Sara Hall, the co-executive director at campaign group Positive Money said Nationwide 'hiking its chief executive's pay because that's what the big banks are doing would be completely at odds with what building societies are supposed to stand for'. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The move is 'counterintuitive for an institution whose main selling point is putting its customers before shareholders', Hall added. A Nationwide spokesperson pushed back against the criticism, saying its pay proposals – although advisory – 'always received overwhelming member support'. 'Any suggestion that we would ever ignore a vote against it is simply ridiculous. We always consider their views and at the last AGM over 94% of votes were in favour of the proposed remuneration policy,' they said. 'Nationwide delivered record member value last year, we are still first for customer satisfaction among high street banks, and more people switched their current accounts to Nationwide than to any other brand. 'We have managed this because we can attract, retain and motivate talented leaders. Even after the changes that are being proposed at the AGM, Nationwide's chief executive will still be paid substantially less than the other large banks.'
Reuters
29-05-2025
- Business
- Reuters
Britain's Nationwide reports annual profit up 30% as it integrates Virgin Money
LONDON, May 29 (Reuters) - Britain's Nationwide Building Society reported its annual profit rose 30%, as it incorporated its takeover of rival Virgin Money, which made it the country's second biggest mortgage lender. Nationwide said on Thursday its statutory 2004 profit before tax rose to 2.3 billion pounds ($3.09 billion), up from 1.8 billion the year before as it recorded its highest ever year for mortgage lending and retail customer balances. ($1 = 0.7444 pounds)
