Halifax's new-build LTV hike to 90% is welcomed
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Halifax Intermediaries’ decision to hike the maximum LTV on new-build houses from 80% to 90% has been welcomed as a major boost for the sector.
The products are only available on houses built by Barratts, Persimmon Homes and Taylor Wimpey, and through a limited distribution of intermediaries.
A spokesman for Halifax says the hike brings its new-build offering in line with the maximum LTV on its core range.
He says: “It recognises changes in the new-build market and will allow us to support those unable to meet larger deposit requirements.”
Nigel Stockton, financial services director at Countrywide, says this is a major breakthrough for borrowers, brokers and developers.
He adds: “It is great news for first-time buyers and will give hope to home movers unable to access funding for new-build houses.”
David Hollingworth, mortgage specialist at London & Country, says: “This will have a positive impact on the new-build sector and will delight developers as it puts the deposit requirement for new-build in line with that of the open market.
“Any criteria change from Halifax is significant because it is such a large lender and could encourage others to follow suit.”
Halifax’s maximum LTV for new-build flats remains at 80%, as does its LTV for new-build houses built by firms other than its named developers.
The lender could not confirm which intermediaries will have access to the new products.
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