The maximum new-build LTV for a house will be 95%, and for new-build flats, the maximum LTV will rise to 85%.
Nationwide said prospective homeowners can use Nationwide’s Helping Hand for new-build house purchases up to the maximum LTV.
The Helping Hand products allow up to six times income at 95% LTV, meaning that borrowers could access around 33% more compared to standard high-LTV lending, which is typically limited at 4.5 times income.
The firm said it has supported around 57,000 customers since it was launched in 2021, and more than 26,000 customers used it between April 2024 and March 2025.
Nationwide added that it will increase its offer for new-build properties from six months to nine months.
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The firm said the change would give customers and brokers “greater certainty and flexibility during the construction process” and reduce the need to reapply for a mortgage.
Nationwide said mortgage new-build sales in 2024 were a third lower than the same period in 2022, the last full year of the Help to Buy scheme.
The lender explained that “deposit requirements and affordability challenges” are key challenges and its latest changes would “support the new-build sector by tackling them”.
The bank also called on the Bank of England to review the loan-to-income (LTI) limit as it was curbing its ability to support first-time buyers.
With the Helping Hand product, while it is “extremely popular”, the amount of lending that can be done at or above 4.5 times income is capped at 15% of total qualifying loans.
Nationwide said it was “continually having to manage its lending relative to that limit, and these positive changes to its maximum LTVs for new build properties will add volume, which may require further action to ensure Nationwide remains within the limit”.
The firm already called for relaxed mortgage lending rules in May, with the mutual’s chief executive saying the LTI limit was reached every year and was restricting its lending.
Henry Jordan, Nationwide’s director of home, said a “strong housebuilding sector drives growth” and the trio of changes would support that.
He said: “These changes have the potential to meet the strong first-time buyer demand for new builds that has gone unmet since the end of Help to Buy, whilst also stimulating the construction sector to build more homes with the confidence that buyers can get a mortgage on them.
“However, without a review of the high LTI limit, this potentially significant change for first-time buyers, the construction sector and growth more broadly will be constrained in terms of impact.”
Adrian MacDiarmid of Barratt Redrow added: “Nationwide Building Society has, for many years, been a valued, trusted partner of Barratt Redrow in supporting our customers who aspire to homeownership. These latest changes are a testament to their commitment to the market, and we believe will help more buyers on this journey.
“Improving affordability and access to homeownership helps underpin housebuilders’ confidence to invest in order to deliver the homes that this country needs. We look forward to continuing to work with Nationwide Building Society to support our mutual customers.”
Ceri Pearce, UK sales and marketing director at Taylor Wimpey, said: “Nationwide’s latest mortgage enhancements are a welcome step at a time when desire for homeownership is strong, but affordability continues to challenge some customers – especially first-time buyers.
“The increase in the maximum LTV on new-build houses to 95% will make it easier for buyers to secure a mortgage with a smaller deposit, and the extension of mortgage offers to nine months will give borrowers greater certainty and flexibility during the construction process. These changes reflect a strong commitment to supporting the housing market and responding to the underlying demand for new homes.”
