Lloyds Banking Group has extended its Help to Buy mortgage guarantee scheme to include new-build properties from today (14 July).
Homeowners will be able to purchase new-build properties through both Halifax and Lloyds Bank Help to Buy mortgage guarantee scheme products.
The Help to Buy mortgage guarantee scheme allows people to purchase a pre-owned or new-build property under £600,000 with a 5 per cent deposit. The mortgage guarantee covers up to 15 per cent of the home’s purchase price.
As a result of Lloyds’ changes, mortgages on new-build houses and flats will now be available between 90 and 95 per cent loan-to-value through both Halifax and Lloyds, the firm said in a statement.
New build 80 to 90 per cent LTV lending will be available on new-build flats, previously this was only available for houses, and will also be available through Lloyds Bank, which has not previously lent on new-build properties above 80 per cent LTV.
The panel of builders has been extended to allow better access to these schemes for customers looking to borrow over 80 per cent loan-to-value, Lloyds said.
As of 4 September, Halifax will withdraw from the NewBuy and Mi New Home schemes.
Stephen Noakes, mortgage director at Lloyds Banking Group, said: “We continue to support customers with smaller deposits who are buying new build properties and as a result the group is allowing these homes to be bought through our Halifax and Lloyds Bank Help to Buy mortgage guarantee scheme products.”
