Mortgage News
Leeds BS ups max LTV for new-build and standard properties
Leeds Building Society has increased the maximum loan-to-value (LTV) ratio for new-build and standard properties.
For new-build properties, the maximum LTV will rise from 90% to 95% for new cases for standard residential new houses and increase from 80% to 85% for new cases for standard residential new-build flats.
On standard properties, for new cases for standard residential non-new-build flats, the maximum LTV will go up from 80% to 95%.
The lender said that it was “committed to accepting applications on a wide and varied range of new-build cases, including those less well-served by the wider market”.
The firm said that, coupled with the enhanced affordability it offers for properties with Energy Performance Certificate (EPC) ratings of between A and B, its lending criteria on new builds have been bolstered by the changes.
“Applicable to new-build and standard, second-hand properties, the changes will break down barriers facing some mortgage applicants and support more aspirational homeowners. The changes mean that applicants will need a smaller deposit than previously required to secure a mortgage with Leeds Building Society,” it noted.
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Martese Carton (pictured), director of mortgage distribution at Leeds Building Society, said: “Building up a deposit is one of the biggest barriers to homeownership, so the changes we have implemented today will offer greater flexibility for our borrowers and will come as good news for many aspirational homeowners as the cost of living continues to bite.
“This is yet another example of the society backing its words with actions in support of first-time buyers, building on actions we’ve taken such as withdrawing from lending on second residential homes, our pilot of restricting lending on holiday lets and integration with the Experian Boost enhanced credit check system, and the changes we’ve made today will increase our ability to achieve that goal.”
Several lenders have been increasing their maximum LTVs for new builds in recent weeks, including HSBC and Nationwide.