Deposit requirement halved for buyers of new build houses
Barclays has launched 95% loan-to-value (LTV) mortgages for purchasers of new build houses, in a move aimed at easing the path to home ownership, especially for those entering the market for the first time.
The new offering applies to new build houses with a maximum purchase price of £600,000. Under the revised terms, buyers can now secure a property with a deposit as low as £30,000, compared with the previous requirement of £60,000 for a home at this value.
The full range of Barclays’ residential 95% LTV mortgage rates is available, with current options including a five-year fixed rate at 4.79% and a two-year fixed rate at 4.82%, both with no product fees. Standard affordability and credit checks remain in place.
Barclays’ Property Insights report has repeatedly identified the challenge of saving for a deposit as a significant barrier for prospective buyers, particularly those purchasing their first home. The report notes that the average age of a first-time buyer with Barclays has increased from 31 to 34 in recent years, with many opting for houses over flats as their initial purchase.
“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,” said Lee Chiswell (pictured right), head of mortgages at Barclays.
“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.”
Barclays also provides targeted support for new build transactions, including day one valuations at no cost for residential properties up to £2 million, the ability to lock in rates for up to 12 months via a six-month extension after the initial offer period, and access to a dedicated new build team to assist brokers with the complexities of new build applications.
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