Extra help for first-time buyers

Extra help for first-time buyers is on the way as Lloyds Banking Group launches First-time Buyer Boost. This will increase the loan to income multiple of 5.5 times for eligible first-time buyers who take out a mortgage with Halifax or Lloyds Bank with a loan-to-value of 90% or less. Currently, the maximum amount the bank lends to these customers is 4.49 times their income. First-time Buyer Boost will enable eligible customers to borrow up to 22% more.

Meanwhile, average house prices were up 2.4% year on year, a slight pickup from the 2.1% recorded in July and the fastest pace since December 2022, says Nationwide’s latest data. The lender comments that, provided the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.

Nationwide’s analysis also suggests that a more energy-efficient property rated A or B attracts a modest premium of 2.8% compared to a similar, more common ‘D’-rated property. There is little difference for properties rated C or E compared with D.