For the use of mortgage intermediaries & other professionals only

First-time buyer support

Find out how we could lend more to your first time buyer clients.

 

Helping first‑time buyers get onto the property ladder

At Halifax Intermediaries, we know the main obstacles preventing first-time buyers getting onto the property ladder are the size of the deposit required and being able to borrow the amount needed.

That’s where we can help you and your clients with a:

  • £5,000 deposit mortgage
  • First Time Buyer Boost mortgage (an increased 5.5x loan).

We treat a joint application as first time buyer if only one applicant is a first time buyer. Remember to key the FTB as first applicant.

£5,000 Deposit mortgage

A low £5,000 deposit is needed on purchases up to £300,000.

How to qualify?

  • Any applicant must be a first-time buyer
  • Maximum purchase price of £300,000.
  • Deposit is from own money and cannot be gifted, proof of deposit may be required.
  • Choose ‘Low deposit’ scheme when keying an application.
  • Choose from relvant products for above 95% loan to value (LTV).
  • A free Level 1 mortgage valuation will be included with these products.

Other important information

  • Deposit can be savings or equity from a property sale.
  • This must be the customer's only residence and they must not have an interest in any other properties such as a second home or buy to let.
  • Not available on new build properties or other schemes (For example, shared equity and shared ownership) where normal maximum loan to value limits apply.
  • Maximum 4.49x loan to income (LTI) cap will apply.
  • A minimum credit profile or credit score level is required otherwise standard LTVs will apply.
  • Current credit commitments will be deducted as ongoing in our affordability calculation even when declared as ‘to be repaid’ at or before completion.
  • The scheme will only apply if the property purchase price is £102,000 or above, below this level standard 95% LTV products would be available and a smaller deposit may be acceptable. 

First Time Buyer Boost

Increased loan to income (LTI) cap of 5.5x.

How to qualify?

  • Any applicant must be a first-time buyer
  • Total income on application must be £40,000 or more.
  • Loan to value (LTV) is 90% or less.
  • No scheme to select, increased LTI is automatically applied.

Other important information

  • Not available on shared equity or shared ownership schemes.
  • For a small number of applications the credit profile or credit score level may restrict the LTI applied to 5x rather than 5.5x, or standard LTIs may apply.
  • Further Information on first time buyer boost and our LTIs .

Further details

Definition of a first-time buyer (FTB)  

A FTB must not have previously had a mortgage or purchased a property (including bought for cash) either in the UK or abroad. In instances where an applicant has owned (such as inherited) but not previously bought a property they are classified as a FTB. For joint applications, only 1 applicant needs to be a FTB to qualify for £5,000 Deposit mortgage, First Time Buyer Boost or our FTB products.

Lower deposit risks

It is important any customers choosing to put down a smaller deposit understand the increased risk of falling into negative equity if house prices drop and how that could impact their options in the future, like remortgaging or moving home.

First-time buyer products

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