Lenders best mortgage offers are improved for new build homes.
Lenders are planning to improve their new build best mortgage offers by relaxing lending criteria. Home buyers should now be able to buy a new build property with a smaller deposit than before.
HSBC are the first to announce an increase to its loan to value levels for its best mortgage products for new build. The lender's LTV will rise from 75 to 85 per cent. It is hoped that HSBC will be the first of many to introduce to relax criteria.
HSBC has said that it believes the new build market had now stabilised and therefore it considers it safe to relax lending criteria.
Samuel Warren who is the director of residential development for Chesterton Humberts, commented on the HSBC announcement saying it is a crucial indicator for buyers that such a big name lender is relaxing criteria. He added that in the future it may well be possible for more property buyers to get a larger new build mortgage than before.
In general mortgage lenders prefer to avoid being the only one offering a high LTV product, as this usually means they become inundated with applicants which results in their inability to cope with demand.
With the HSBC new build mortgage announcement other lenders have now been given a free hand to bring in such changes themselves.
For details of lenders best mortgage products on offer contact Deal Direct.