Halifax unveils 95 percent mortgages for new-build homes

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Homebuyers are rejoicing at the news that the UK’s leading lender has unveiled a 95 per cent mortgage to help with purchasing a new-build home.

Halifax has announced that from July 1, 2022, prospective buyers will be able to take advantage of the new loan-to-value (LTV) mortgage product on a new selection of areas, including new-build properties.

The announcement has been greatly received by the housing market and seen as very timely with the government’s Help To Buy scheme set to close in the coming months.

After supporting more than 350,000 households to take that first step on to the property ladder, the Help To Buy scheme will end in March 2023. Halifax’s new 95 per cent LTV mortgage offers buyers an alternative route to purchasing a home.

It is hoped that Halifax’s announcement will encourage more of the UK’s leading mortgage lenders to offer buyers 95 per cent mortgages on new-build homes and support growth in the market.

buyers 95 per cent mortgages on new-build homes and support growth in the market.

Essentially, a 95 per cent LTV mortgage is where the purchaser lends 95 per cent of the value of the property from a mortgage provider, meaning that only a five per cent deposit is required.

An example would be if you bought a property for £250,000 using a 95 per cent mortgage, you would take £237,500 mortgage from a lender and need a £12,500 deposit.

Halifax’s aim with its new mortgage product is to make it easier for buyers to purchase a new-build home. Saving large deposits may prove difficult for some purchasers, so a 95 per cent mortgage can make buying a new-build home more accessible.

Commenting on the unveiling of the 95 per cent mortgage for new-build homes, Halifax’s mortgage director Andrew Assam said: “We recognise that getting a deposit together is still the biggest hurdle faced by most first-time buyers.

“This also underlines our confidence in the new build market and our support for the UK construction industry. Supporting new build homes supports the drive to net zero by making warmer, greener homes more accessible and attainable for potentially thousands of new buyers.

Positive news to support market growth

With lenders typically excluding new-build homes from being applicable for 95 per cent mortgages, Halifax’s announcement is fantastic news for buyers and the housing market alike.

Through making new-build homes available for these mortgages, prospective buyers will have the opportunity to purchase energy-efficient homes built to the highest of standards without needing a significant deposit.

Not only that, but 95 per cent mortgages can also act as a catalyst for growth within the new-build home market and help to further develop the sector to meet buyer demand.

This unveiling may encourage more leading lenders to offers this form of mortgages on new-build homes to help those trying to get a foot on the ladder or make their next move.

Are you looking to take advantage of Halifax’s new 95 per cent mortgages on new-build homes? At Avant Homes, we pride ourselves on offering game-changing living through our new homes. Find your dream home with us today here.

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