This change will be applied to all cases with a first Decision in Principle (DIP) on or after 2 December, as well as cases which are reprocessed following an initial DIP decision.
In April this year, Nationwide returned to allowing bonus, overtime and commission income to be included as part of the mortgage affordability calculation.
Nationwide will be changing the way bonus, overtime and commission is assessed, which increases the amount that can be used in the affordability assessment. This comes into effect from tomorrow.
Mike Pitcher, media relations manager, said: “In regards to fixed term contracts for bonus, overtime and commissions, we have moved from taking into account the lowest amount over the last three pay slips to taking an average amount of this sum over the last three pay slips.
“On fixed term contracts, we’ve tweaked the criteria to now take into account a bigger proportion of that income when we’re assessing a borrower’s affordability.”
Henry Jordan, director of mortgages at Nationwide, said: “As a responsible lender, we always ensure that borrowers can afford their mortgage payments both now and in the future.
“These latest enhancements to our affordability criteria mean we are well placed to support more people to purchase their property as well as those looking for additional borrowing.”