First-time buyers to benefit from extra lending

First-time buyers to benefit from extra lending

The Lloyds Banking Group is offering extra help for first-time buyers as it launches its First-time Buyer Boost. This will increase the loan to income multiple of 5.5 times for eligible first-time buyers who take out a mortgage with Halifax or Lloyds Bank with a loan-to-value of 90% or less. Currently, the maximum amount the bank lends to these customers is 4.49 times their income.

First-time Buyer Boost will enable eligible customers up borrow up to 22% more. Meanwhile, average house prices were up 2.4% year on year, a slight pickup from the 2.1% recorded in July and the fastest pace since December 2022 says Nationwide’s latest data. The lender comments that providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earning outpacing house price growth.

Nationwide’s analysis also suggest that a more modest energy efficient property rated A or B attracts a modest premium of 2.8% compared to a similar rated and most common ‘D’. There is little difference for properties rated C or E compared with D.

Our award-winning team look forward to helping you make your move stress-free.

Arins Property Services - selling & letting homes in, Lower Earley, Shinfield, Tilehurst, Winnersh, Reading and Wokingham since 2009.

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