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Principality BS to offer higher LTI to first-time buyers
Principality Building Society has brought out a higher loan to income (LTI) for first-time buyers to help more get onto the property ladder.
The heightened LTI of 5.5x income is exclusive to brokers and is available for standard five-year fixed rate residential deals for first-time buyers.
In order to be eligible, applicant should have an individual income of £30,000 individually or £50,000 combined.
The lender added that 100% of income and overtime would be accepted.
The move comes after research from the mutual showed that first-time buyers were using a range of strategies to buy a property, and they each needed different kinds of support.
It noted that there were broadly five different kinds of first-time buyer, which includes a first-time buyer taking their first leap onto the ladder, making the most of their opportunity, establishing roots, looking for change to meet their specific needs and those looking to catch up.
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Each first-time buyer type needs a broker to offer different support as they may need a navigator, motivator, problem solver, champion or ally.
Helen Lewis, national intermediary manager at Principality Building Society, said: “Our first-time buyer research shows us that this is a diverse group and can be at different stages in their life, have different levels of family support and differing degrees of financial confidence.
“This enhanced LTI is one of a wide range of solutions we will be showcasing over the next three months that aim to provide a boost for first-time buyers.”
Principality Building Society’s half-year report showed that it had assisted over 3,576 first-time buyers with a mortgage to get onto the property ladder, which is up from 3,304 at the half-year mark last year.