The building society, that has its headquarters based in Swindon, said while it was limited to lending no more than 15% of new loans at or above 4.5x income, it is calling on the government to review this.
It comes as Nationwide was revealed as the top lender for first-time buyers over any other bank or building society in the UK.
According to data from analysts at CACI, it was the top lender for eight out of 12 months last year and maintained its position throughout the second half of 2024.
I gave evidence to @CommonsTreasury on LISAs today – a savings product 1st time homebuyers can use to get an up to £1,000/yr bonus on. Yet use it on a property over £450,000 and the state effectively fines you 6.25% of what you’ve put in, to get the cash out.
This is unfair and… pic.twitter.com/CpG2tdRZQz
— Martin Lewis (@MartinSLewis) February 26, 2025
Nationwide also provided more than 180,000 mortgages in 2024 – with over one in three of these to first-time buyers.
This was backed by the building society increasing lending from 5.5 to six times’ income in late September through its Helping Hand mortgage boost, which enables higher loan to income lending and a maximum of 95% loan-to-value.
It was the only major provider to offer this level of lending.
Henry Jordan, Nationwide’s director of home, said: “We believe it’s important to put first-time buyers first given how tough it is to get on the housing ladder.
“Our enhanced Helping Hand mortgage is extremely popular with first-time buyers and we are committed to finding new ways to ease affordability.
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“Increasing the loan-to-income lending cap would also enable lenders to support more first-time buyers.”
In January, the Chancellor also wrote to regulators asking them to review lending regulations to boost the mortgage market and help more first-time buyers get on the property ladder.
In 2020, the average loan size for first-time buyers was around £159,000 and in 2024 it was £197,000. For those who benefitted from Helping Hand, the average loan size last year was more than a quarter higher (26%) at around £249,000.