Coventry Building Society has increased the amount eligible first-time buyers can borrow to as much as 6.5 times their income.
The higher loan-to-income limit is available through Coventry for intermediaries on residential purchases at up to 95% loan-to-value.
Sole applicants must earn at least £30,000, while joint applicants require a combined income of £50,000. Applications will remain subject to the building society’s affordability assessment.
The lender has also raised its loan-to-value limits for new-build properties. It will lend up to 95% on owner-occupied new-build houses and 85% on owner-occupied new-build flats.
For buy-to-let investors purchasing new-build flats, the maximum loan-to-value will be 75%.
Kevin Purvey, director of mortgage distribution at Coventry Building Society, said: “We know that many first-time buyers have strong incomes, but their borrowing power doesn’t quite stretch far enough to buy the home they want.
“By offering eligible customers the opportunity to borrow up to 6.5 times their income, we’re helping more people take that first step onto the property ladder.
“Many first-time buyers are also considering new-build properties, whether that’s because they’re looking for a more energy-efficient home or the appeal of a brand-new property. By increasing our loan to value limits on new-build homes alongside these enhanced income multiples, we’re giving customers greater flexibility and helping them access a wider range of homes.
“Together, these changes give brokers more options to support customers with different needs and circumstances, making it easier for more people to find a solution that’s right for them.”
David Hollingworth, associate director at L&C Mortgages, said: “First time buyer appetite remains strong, but all too often aspiring homeowners find themselves held back by the challenge of saving a big enough deposit to make up the difference between their potential mortgage borrowing and the purchase price.
“Building those savings while paying rent and dealing with the higher cost of living can feel like an impossible job. Improved lender flexibility to enhance mortgage borrowing options for those that can demonstrate affordability can completely reframe the potential timeline to making home ownership a reality.”
