Teachers for Intermediaries (TFI) has increased its maximum loan-to-value (LTV) limits to 95% on new-build houses and flats, as it looks to support borrowers with smaller deposits.
The enhanced proposition means eligible purchasers can now secure lending up to 95% LTV on new-build properties, provided they contribute a minimum 5% deposit from their own resources or through a gifted deposit.
Alongside the higher LTV limits, TFI has revised its approach to floor-height restrictions for flats. For properties completed from 2025 onwards, there will be no floor-height restrictions on lending up to 80% LTV. Where borrowing exceeds 80% LTV, applications will be considered on flats located in buildings of up to 12 storeys.
For properties completed before 2025, existing criteria remain in place, with lending restricted to flats in blocks of up to six storeys.
David Leek, chief commercial officer at TFI, said: “We know that new-build properties continue to play an important role in addressing housing demand and remain an attractive prospect for time-poor first-time buyers who may not have the skills or support to complete renovation works to older homes.
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“By increasing our maximum LTV to 95% on both new-build houses and flats, we’re able to support more borrowers who may have limited deposits but strong affordability.”
The enhanced proposition is available immediately through TFI.
Gen H cuts rates by up to 30bps
Gen H has reduced rates across its two-, three- and five-year fixed mortgage products, with the largest reductions targeted at borrowers with smaller deposits.
The lender said cuts of between 14 basis points (bps) and 30bps have been applied across most fee-free two-year fixed products between 60% and 95% LTV, including a 30bps reduction at 95% LTV.
Fee-free three-year fixed products have fallen by between 10bps and 22bps across most LTV bands, while fee-free five-year fixed rates have been reduced by between 7bps and 12bps at 90-95% LTV.
Products carrying fees have also been cut by up to 21bps. However, targeted increases of up to 13bps have been made on some 85% LTV products and up to 16bps across parts of the retention range.
Following the changes, Gen H’s lowest rates for new customers include a 5.79% two-year fixed at 60% LTV with a £1,499 fee, and a 6.69% five-year fixed at 95% LTV with the same fee.
The lender said the repricing follows a recent decline in swap rates and comes despite average fixed mortgage rates across the wider market continuing to edge higher.
Sara Palmer, chief distribution officer at Gen H, said: “Swap rates have come down ever so slightly and we’re passing that on, with our biggest reductions for buyers with the smallest deposits.
“Many of our borrowers need the flexibility that our criteria and income booster give them, and these cuts make that borrowing more affordable.”
MHBS cuts Core Bridge minimum loan size to £100k
Market Harborough Building Society (MHBS) has reduced the minimum loan size across its Core Bridge range from £200,000 to £100,000 in a move designed to make its bridging finance proposition accessible to a wider group of borrowers.
The lender said the change would give brokers greater flexibility when placing straightforward bridging cases while retaining access to its wider bridging offering for more complex transactions up to £5m.
The Core Bridge range is aimed at more straightforward regulated bridging finance cases between £100,000 and £1m, with terms of up to 12 months and variable monthly rates available up to 70% LTV.
Iain Smith, head of mortgage distribution at MHBS, said: “By reducing the minimum loan size to £100,000, we’re making our Core Bridge range more accessible to a wider selection of clients who need a straightforward bridging finance solution.”
He added: “Our experienced, dedicated bridging finance team has won three industry awards in the last 12 months and our Core Bridge range is backed by a guaranteed service commitment for qualifying cases, with a £500 charity donation if we don’t meet SLAs.
“Together, they give brokers confidence that they’ll receive both expert guidance and a service they can rely on.”
