Mortgages on all new build house and flat purchases will now be considered up to 85% LTV (previously 80%), while the maximum LTV available for those buying through a Shared Ownership scheme has also been increased.
Customers buying a new house or flat with a registered provider or housing association through a Shared Ownership scheme are now able to apply for up to 90% LTV (previously 80%).
A managed panel of builders and brokers will remain for borrowers who wish to apply for a standard 85%-95% LTV mortgage.
The changes will be introduced by Halifax tomorrow.
Lloyds Banking Group head of housing development Douglas Cochrane (pictured) said: “The new build sector continues to be central to the success of the UK housing market, and helping to provide greater choice and access to mortgage products is fundamental to supporting its longevity.
“Through Lloyds Banking Group’s Helping Britain Prosper plan we have committed to lending £10bn to first-time buyers this year, and the changes to our Shared Ownership lending policy will help us support this goal.”
He added that providing a broader range of options would help brokers meet more of their customers’ needs.
Legal & General Mortgage Club new build manager Craig Hall added that the changes were a great boost to the new build lending market and welcome news for borrowers.
“Improvements like this are key to the growth of the sector and also shine the spotlight on Shared Ownership as a realistic alternative option for first-time buyers,” he said.
“A greater number of lenders willing to lend on Shared Ownership properties adds to the legitimacy of the tenure, and will help to increase the take up, meaning more first-time buyers are able to get on the property ladder in the long-run.”
The offers are expected to be available through direct channels for other Lloyds Banking Group brands.