The mutual said this would support people by maximising their borrowing potential when getting onto the property ladder.
A minimum income of £30,000 is required for sole applicants, while joint applicants must have a combined income of £50,000.
Coventry Building Society will lend up to 95% LTV on owner-occupied new-build houses, 85% LTV on owner-occupied new-build flats, and 75% LTV on buy-to-let new-build flats.
Kevin Purvey, director of mortgage distribution at Coventry Building Society, said: “We know that many first-time buyers have strong incomes, but their borrowing power doesn’t quite stretch far enough to buy the home they want.”
Purvey said giving people the opportunity to borrow as much as 6.5 times their income would help them take their first step onto the property ladder.
£2.5m paid to help broker clients benefit from greener homes
Sponsored by Halifax Intermediaries
He added: “Many first-time buyers are also considering new-build properties, whether that’s because they’re looking for a more energy-efficient home or the appeal of a brand-new property. By increasing our loan to value limits on new-build homes alongside these enhanced income multiples, we’re giving customers greater flexibility and helping them access a wider range of homes.
“Together, these changes give brokers more options to support customers with different needs and circumstances, making it easier for more people to find a solution that’s right for them.”
David Hollingworth, associate director at L&C Mortgages, said first-time buyer appetite remained strong, “but all too often aspiring homeowners find themselves held back by the challenge of saving a big enough deposit to make up the difference between their potential mortgage borrowing and the purchase price”.
Hollingworth added: “Building those savings while paying rent and dealing with the higher cost of living can feel like an impossible job. Improved lender flexibility to enhance mortgage borrowing options for those that can demonstrate affordability can completely reframe the potential timeline to making homeownership a reality.”
