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Halifax launches new build 95 per cent LTV loans
Halifax has raised its maximum loan to value (LTV) on new-build homes to 95 per cent.
This has dropped the minimum deposit required from 10 per cent to five per cent and brings the maximum LTV in line with existing properties. Changes will apply from 1 July.
At the same time, LTVs on housing association shared ownership mortgages have been increased to 95 per cent.
The lender said it is also extending availability to homes by smaller housing developers, opening it up to over 2,000 SMEs.
In a statement, the lender said pulling together a sufficient deposit is often the biggest hurdle for first-time buyers.
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The average UK house price stands at £289,099 meaning savers need to find thousands of pounds before they are able to buy their first home.
Halifax’s change comes as the government prepares to withdraw Help to Buy which offers borrowers the chance to buy a new-build home with a small deposit.
Lenders have typically excluded new builds from the highest LTVs.