Mortgage expansions for thousands of first-time property buyers will be initiated by Lloyds.
## Boosting Opportunities for First-Time Buyers: Major Lenders Expand Mortgage Multiples
In a move aimed at assisting more first-time buyers in securing a place on the property ladder, several leading lenders have expanded their mortgage multiples. Notable among these are Nationwide and Lloyds Bank, both of which are offering increased borrowing opportunities for eligible applicants.
Nationwide has recently increased its high loan-to-income lending limits, enabling first-time buyers to apply for mortgages based on increased income multiples, although the specific multiples have not been detailed in the available data. Meanwhile, Lloyds Bank and its sister brand Halifax have launched the First Time Buyer Boost, providing extra lending for first-time buyers borrowing between 4.5 and 5.5 times their annual salary.
Santander, Barclays, and Halifax also offer mortgages up to 5.5 times the annual income in certain circumstances, taking into account factors like job type, income amount, and debt when determining eligibility. NatWest and Together Mortgages, on the other hand, assess income in the context of overall affordability rather than adhering to a strict maximum income multiple.
Other lenders, such as New American Funding and Chase, provide flexible credit guidelines and down payment assistance, but do not specifically focus on high income multiples. Guild Mortgage, known for its FHA loan offerings and programs for first-time homebuyers, focuses more on low credit score requirements and down payment assistance rather than high income multiples.
The expansion of income multiples has increased the available borrowing by 22% for first-time buyers. Nationwide's changes have lowered the eligibility salary for single applicants from £35,000 to £30,000, and for joint applicants from £55,000 to £50,000. This means that a couple both earning the average full-time wage could borrow up to £411,730 at 5.5 times their combined income.
Lloyds Bank and Halifax require a minimum deposit of 10% for these mortgages. Nationwide's changes could enable 10,000 more people to get on the property ladder. Since August 2024, Lloyds Banking Group has helped 11,000 first-time buyers with the First Time Buyer Boost scheme.
The income multiples for first-time buyers through the First Time Buyer Boost have not been specified in this paragraph. To qualify for the First Time Buyer Boost, an eligible first-time buyer must apply for a first-time buyer mortgage with Halifax or Lloyds Bank.
In addition to these changes, Nationwide Building Society has widened access to its 'Helping Hand' mortgage, enabling some first-time buyers to borrow up to six times their income with deposits as low as 5%. This scheme is also available through Lloyds Bank and Halifax.
These developments follow new plans revealed by Rachel Reeves, along with the Bank of England and financial watchdogs, allowing more homeowners to borrow up to six times their income. The changes come as part of Lloyds Banking Group's commitment to set aside an additional £4 billion for lending to first-time buyers.
- With expanding mortgage multiples, first-time buyers now have the opportunity to apply for mortgages based on higher income multiples, as seen in Nationwide's recent increase in high loan-to-income lending limits.
- In the housing market, personal finance and real-estate sectors, major lenders like Lloyds Bank and Halifax have launched initiatives such as the First Time Buyer Boost, offering eligible applicants extra borrowing opportunities up to 5.5 times their annual salary.
- Some lenders like Santander, Barclays, and Halifax offer mortgages up to 5.5 times the annual income, considering factors like job type, income amount, and debt when determining eligibility.
- In the quest for boosting opportunities for first-time buyers, Nationwide Building Society has introduced the Helping Hand mortgage, allowing some first-time buyers to borrow up to six times their income with deposits as low as 5%, following new plans by Rachel Reeves and the Bank of England.
