Barclays has expanded its support for homebuyers by launching 95% loan-to-value mortgages for new build houses.
The higher LTV applies to houses valued up to £600,000. Under previous criteria, a buyer purchasing at that level would have needed a £60,000 deposit. The new product reduces that requirement to £30,000.
The bank confirmed that all of its existing 95% LTV residential rates can be used, including today’s five-year fixed at 4.79% and two-year fixed at 4.82%, both without product fees. Standard affordability and credit checks will continue to apply.
Barclays said the change responds to the persistent challenge highlighted in its Property Insights report: first-time buyers are struggling to save for deposits. The average age of a first-time buyer with the bank has risen from 31 to 34 in recent years. Buyers are also increasingly prioritising long-term homes over starter flats when making their first purchase.
Lee Chiswell, head of mortgages at Barclays, said: “We’ve been incredibly focused this year in making home ownership affordable, from the introduction of innovative propositions like Mortgage Boost to tweaked lending criteria allowing us to safely lend more to help customers achieve their ambitions.
“Raising the maximum LTV for new build houses is yet another initiative that I’m proud to say will help people who may previously not have had enough for a deposit on their dream home.”
The bank already provides a range of measures designed to support borrowers purchasing new build homes. This includes day one valuations, free on residential properties priced up to £2 million, and the option to lock in rates for twelve months.
Customers or brokers can apply for a six-month extension once the initial offer period ends, with the choice of keeping the original rate or switching to a new business rate at that time. A dedicated new build team is also in place to assist brokers with more complex applications.
