Halifax mortgage deals for new builds now offered at 90 per cent LTV
Lloyds Banking Group is to offer Halifax mortgage deals for new-builds at 90 per cent LTV, which increases the lenders maximum LTV on this type of property from the previous cap of 80 per cent. Risk averse lenders have previously shown a lack of innovation in this field and it is hoped that more lenders with follow the Halifax example by working with developers and brokers to try something new.
The products are only available through Halifax Mortgage Intermediaries and only on houses built by the developers Barratts, Persimmon Homes and Taylor Wimpey. A spokesman for Halifax said “We have introduced some products available for new build purchases where the maximum LTV is now aligned with our core range. This does not apply to all new build lending and is only available through selected house-builders. This move recognises changes in the new build market and will allow us to support those unable to meet larger deposit requirements.”
Halifax mortgage deals for new-build flats remain at a maximum 80 per cent LTV. The move is being seen as a major breakthrough for borrowers, brokers and developers. Borrowers are being encouraged to not underestimate the significance of the development. It is a move which is seen as great news for first-time buyers and, it is viewed as something that will give hope to home buyers previously unable to access mortgage funding for new-build houses. The lenders believes that the Halifax new-build deals could help key to kick start the housing market in 2012.
