Teachers for Intermediaries has increased its maximum LTV on new-build houses and flats to 95%, widening access to its mortgages for buyers with smaller deposits.

The mutual has raised its maximum LTV for new-build flats from 85% to 95%, while the limit for new-build houses has increased from 90% to 95%.

Borrowers will need to provide a minimum 5% deposit, which can come from their own funds or be gifted.

FLAT CRITERIA UPDATED

Teachers for Intermediaries has also revised its criteria for flats according to the age and height of the development.

For properties completed from 2025 onwards, there will be no floor-height restriction where borrowing is up to 80% LTV. Above 80% LTV, the lender will consider properties in blocks of up to 12 storeys.

The existing criteria will continue to apply to properties completed before 2025, with lending restricted to flats in blocks of up to six storeys.

Borrowers working in education can combine lending of up to 95% LTV on new-build properties with the mutual’s proposition allowing borrowing of up to seven times joint income. The maximum for applicants working outside education is five times joint income.

David Leek, chief commercial officer at Teachers for Intermediaries, said: “We know that new-build properties continue to play an important role in addressing housing demand and remain an attractive prospect for time-poor first-time buyers who may not have the skills or support to complete renovation works to older homes.

“By increasing our maximum LTV to 95% on both new-build houses and flats, we’re able to support more borrowers who may have limited deposits but strong affordability.”

The new criteria are available immediately through Teachers for Intermediaries.