The Nottingham has announced that borrowers with a 5 per cent deposit will now be able to search for houses in the £500,000 range.
This marks a doubling of the building society’s previous maximum borrowing limit on its high LTV products, which was set at £275,000.
The lender says that this move is a response to house prices in the South East of England and London, where average house prices are £328,212 and £475,066 respectively, according to latest government statistics.
In 2018, 70 per cent of applicants for The Nottingham’s 95 per cent LTV products were first-time buyers, the company adds.
Nottingham for Intermediaries head Nikki Warren-Dean says: “We spend a lot of time listening to the views of our customers, broker network and team to ensure our mortgage products are competitive and attractive to a whole range of buyers. We know saving up for a deposit can be tough and for some, even saving 5 per cent is a challenge.
“The Nottingham was founded on the principle of helping people purchase their homes and the proactive developments we are making… are helping more and more members achieve that goal.”