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Halifax launches new build 95 per cent LTV loans

  • 29/06/2022
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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.

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.

Andrew Mason, head of strategic partnerships and housing, at Halifax, said: “We recognise that getting a deposit together is still the biggest hurdle faced by most first-time buyers, and these changes could reduce the minimum deposit required on an average house to as little as £4000.”
“This also underlines our confidence in the new build market and our support for the UK construction industry. We have worked closely with the industry and listened to their needs to develop these changes.
“Just as importantly, supporting new build homes supports the drive to net zero by making warmer, greener homes more accessible and attainable for potentially thousands of new buyers.”

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