The mutual has also reduced the minimum loan size from £150,000 to £180,000, and the minimum income threshold has been lowered from £40,000 to £30,000.
Principality Building Society said the changes would improve lending options for brokers and their first-time buyer clients.
This change follows updated criteria from the mutual, including an improved online affordability calculator, allowing homebuyers to potentially borrow up to 30% more.
Earlier this month, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) opened a consultation to permanently allow lenders to provide a greater share of mortgages at high-LTI ratios.
Helen Lewis (pictured), national intermediary manager at Principality Building Society, said: “Following broker feedback, we have introduced a further change for first-time buyer clients. The reduction in loan size and income requirements will make this accessible to more first-time buyers looking to purchase their first property.
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“This feature, combined with our recent affordability changes, provides brokers more flexibility when placing business with Principality.”
