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.”