You are here: Home - Mortgages - First Time Buyer - News -

Halifax to relaunch mortgage deals for first time buyers with 10% deposit

0
Written by: Owain Thomas
03/12/2020
Halifax is relaunching 90% loan-to-value (LTV) mortgages for first-time buyers on 8 December.

The lender is using special criteria which it said would help manage its service proposition and continue to lend responsibly.

The products are only available to first-time buyers, with at least one of any joint applicants needing to be a first-time buyer.

It does not include new build or other schemes and an enhanced credit score will be required.

Loan to income (LTI) is capped and 4.49 times income with maximum loans limited to £500,000.

Halifax noted that any current credit commitments will be deducted as ongoing in its affordability calculation even where declared as ‘to be repaid’.

“The loan amount must be affordable with these commitments deducted as remaining,” it said.

Advisers will be informed when submitting a decision in principle (DIP) if the case does not meet these criteria, and if LTVs on any already submitted cases are increased above 85 per cent they will also be subject to the new criteria.

Halifax’s re-entry into the 90% LTV market is the latest of late as lenders are increasingly returning, with Accord, Platform and TSB all introducing more products in the sector in the last two weeks and Nationwide widening availability.

‘We will monitor service levels’

Jasjyot Singh, managing director of consumer and business banking at Halifax, said: “We are committed to helping people take their first step on to the property ladder and while there have been record levels of mortgage approvals over the past few months, raising a deposit is still hands down the biggest challenge for first-time buyers.

“Reintroducing options at higher LTVs means we can support more people ready to get a foot on the ladder. We will monitor service levels to make sure we continue to be there for our customers.

“We also relaunched our Lloyds Bank Lend A Hand mortgage last month which enables first-time buyers to borrow up to 100% of the mortgage with the support of their family,” Singh added.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week