The Lloyds Banking Group, in a welcome move, has tweaked its lending policy to provide greater choice for homebuyers and their advisers.
According to a latest announcement by the bank, new build mortgages will be available now through Halifax from 80 per cent to 85 per cent LTV (loan to value ratio) on all new build house and flat purchases. In addition, the maximum LTV available for those buying through a Shared Ownership scheme has been increased.
Customers buying a new house or flat with a Registered Provider or Housing Association through a Shared Ownership scheme are now able to apply for up to 90 per cent LTV (previously 80 per cent).
“The new build sector continues to be central to the success of the UK housing market, and helping to provide greater choice and access to mortgage products is fundamental to supporting its longevity. Through Lloyds Banking Group’s Helping Britain Prosper plan we have committed to lending £10bn to first-time buyers this year, and the changes to our Shared Ownership lending policy will help us support this goal,” said Douglas Cochrane, Head of Housing Development, Lloyds Banking Group.
A greater number of lenders willing to lend on Shared Ownership properties adds to the legitimacy of the tenure, and will help to increase the take up, meaning more first-time buyers are able to get on the property ladder in the long-run