Halifax has launched 95% loan to value loans for new-build properties. The maximum LTV available for new-builds now matches existing properties – with a 5% deposit becoming the minimum requirement. In addition, the lender is also extending availability to homes by smaller housing developers, opening it up to more than 2000 SMEs.
With the average house price in the UK currently standing at £289,099, a deposit is often the largest hurdle savers need to overcome. By including new-build homes in their 95% LTV, Halifax are now making it more affordable for those unable to save as much to enter onto the property ladder.
Head of strategic partnerships and housing at Halifax, Andrew Mason, 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 £4,000.” “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.”