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Lloyds Revisits Lending Policy for New Builds

Lloyds Banking Group has revisited its new build lending policy to deliver more choice to both homebuyers and advisers.

Its cap on Halifax-supplied new build mortgages has been extended from 80 to 85% on all new build flat and home acquisitions, and the maximum LTV has been increased for those purchasing through a Shared Ownership scheme.

Borrowers seeking to apply for a mainstream 85-95% mortgage will deal with a managed panel of brokers and builders.

Those purchasing a new home or flat with a Housing Association or Registered Provider via a Shared Ownership scheme are now permitted to apply for up to 90% LTV.  Previously, the upper limit was 80%.

Douglas Cochrane, Lloyds Banking Group head of housing development, said that the new build sector remains central to the success of the nation’s housing market. By offering more choice and improved access to mortgage products, the new build policy will help support its longevity.

Mr Cochrane explained that through the Helping Britain Prosper plan, Lloyds Banking Group has affirmed its commitment to making £10bn available to first-time homebuyers this year. It is a goal that will be supported by changes to the Shared Ownership lending policy.

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A wider range of options will enable brokers to meet more customer needs, and along with a market-leading product and policy support, the added value of the Lloyds specialist housing development team will be emphasised.

Craig Hall, Legal & General Mortgage Club new build manager, said that the new build policy was welcome news to borrowers and  a vital boost to the new build lending market. Such improvements are essential to sector growth and help highlight shared ownership as a feasible alternative option for new homebuyers.

Mr Hall pointed out that an increasing number of lenders offering mortgages for Shared Ownership properties makes the tenure’s legitimacy stronger and will improve take-up speed, meaning that more new homebuyers are able to get a foot on the property ladder in the long run.

 

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