This week Lloyds bank, owner of Halifax, announced an extra £2bn for first time buyers who need to borrow more than 4.5x their income in order to get into the housing ladder.
The Halifax ‘first time buyer boost’ product, will offer up mortgages of up to 5.5x earnings for first time buyers under certain conditions. A 22% ‘boost’ for first time buyers from the normal 4.5x limit.
The move adds Halifax to the list of lenders offering high loan to value mortgages, including Nationwide and Skipton Building society.
To be eligible;
- At least one person applying must be a first-time buyer.
- You must have a deposit of 10% or more to put down.
- The total household income of everyone applying must be a minimum of £50,000
Although it doesn’t do anything to address affordability, it does bring the first rung of the ladder within reach of more people who would otherwise be stuck renting.
For full details of the mortgage see the first time buyer boost page on the Halifax website
References
https://www.birminghammail.co.uk/news/cost-of-living/halifax-lloyds-launch-major-financial-29831742