Major lender to maintain 95% LTV lending even after end of government scheme
Halifax will continue to offer mortgages of up to 95% loan-to-value (LTV) for first-time buyers and homemovers even after the government’s Mortgage Guarantee Scheme wraps up on June 30.
The lender confirmed there will be no changes to its criteria for loans above 90% LTV, maintaining access for eligible borrowers without relying on the government-backed initiative.
From July 1, applicants will no longer be able to select the ‘Homebuyer Special’ scheme when submitting applications.
High-LTV lending will remain available for those buying their sole residence. A minimum 5% personal deposit is required, and product fees cannot be added to loans exceeding the 95% LTV threshold.
Borrowers must not own or have any financial interest in other properties, including second homes or buy-to-let investments.
The offering applies to new build houses and bungalows, though new build flats are excluded. The maximum property price allowed is £600,000, with a loan cap set at £570,000.
Halifax clarified that it will not accept applications using additional support schemes such as shared equity, shared ownership, or Right to Buy.
Applicants must meet an enhanced credit score threshold and are subject to a maximum loan-to-income ratio of 4.49 times. All existing credit commitments will be treated as ongoing when calculating affordability, regardless of whether they are set to be repaid before completion.
The loan must remain affordable with those debts included in the assessment. Lending into retirement remains permitted, provided standard criteria are met.
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