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Barclays raises new build and shared ownership LTV caps

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  • 06/03/2018
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Barclays raises new build and shared ownership LTV caps
Barclays Mortgages has increased loan-to-values (LTVs) for its new build and shared ownership products, as well as changing its affordability criteria for residential and buy-to-let (BTL) loans.

 

Maximum LTVs for new build houses have increased from 85% to 90% for loans up to £500,000.

However, flats and maisonettes will remain unchanged at the current maximum LTV of 85%.

The LTV criteria on the shared ownership mortgage range have also increased from 85% to 95% for loans up to £500,000.

In addition, the LTV cap on like-for-like remortgage applications have increased from 85% to 90% LTV.

 

New build

 

The new build LTV policy will also apply to new build shared ownership properties.

On top of the LTV changes, the lender has also removed the £10k minimum annual bonus threshold and annual bonus caps for residential and BTL loans.

Barclays will now accept 50% of the applicant’s sustainable annual bonus for affordability.

However, income multiple policy will still be capped in line with basic annual income plus allowances.

Craig Hall, new build manager at Legal and General Mortgage Club said: “This news provides further choice to customers that are seeking to purchase a new build house with a larger deposit without requiring the support of the Help to Buy scheme.”

Hall continued: “The policy change provides further competition and choice for borrowers looking to purchase a shared ownership property, a tenure that has seen increased lender support over the last 12 months and will be welcomed by customers, intermediaries and housing associations.”

Kelly McCabe, managing director at The Mortgage People added: “Adding a big brand to the list of lenders at 95% will not only help raise the profile of the product, but also help more people achieve their goal of home ownership.”

“Shared ownership is truly becoming the recognised fourth tenure and Barclays’ support in this is invaluable,” she added.

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