The bank will apply a different affordability calculation when eligible applicants take out a five- or 10-year fixed rate, which could allow them to borrow more.
Nationwide said the enhanced criteria will be available for employed and self-employed applicants.
Sole applicants need to have a minimum income of £40,000 and joint applicants must have a minimum income of £70,000 to be eligible for the enhanced affordability check.
The lender said borrowers will still be subject to a “robust affordability assessment” to ensure it lends responsibly.
It explained that the change would allow higher affordability for customers who have “a track record of mortgage payments and greater payment security through a rate fixed for at least five years”.
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Those looking to remortgage but who don’t require any additional borrowing can borrow up to 6.5 times income up to 95% loan to value (LTV).
As an example, a borrower with an income of £70,000 looking for a 20-year mortgage term on a five- or 10-year fixed rate can now access up to £33,600 more, with a maximum loan of £314,300. The loan to income (LTI) stands at 4.5 times income, up from four times income.
Another example is a like-for-like remortgage, with which a borrower with a £50,000 income and a term of 40 years on a five- or 10-year fixed rate term will be able to borrow £16,100 more, with the LTI rising from 6.2 to 6.5 times income.
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, which should put Nationwide front of mind for those wanting a new mortgage deal.
“With our Helping Hand for first-time buyers as well as the enhanced affordability for homemovers and now for those looking to remortgage, we are demonstrating that the country’s second-largest lender remains committed to supporting all borrowers across the mortgage market.”
