Barclays has introduced 95% loan-to-value (LTV) mortgages for anyone buying a new build house.
The new offer applies to new build houses valued up to £600,000.
Previously, buyers needed a 10% deposit, meaning a £60,000 deposit on a £600,000 property. Under the new criteria, that requirement could be halved to £30,000.
All Barclays’ residential 95% loan-to-value (LTV) product rates are available for these purchases, including a 5-year fixed rate at 4.79% and a 2-year fixed rate at 4.82%, both with no product fees.
Standard affordability and credit criteria still apply.
Barclays’ Property Insights report has consistently shown that saving for a deposit is one of the biggest challenges facing homebuyers, especially first-time buyers.
The average age of a first-time buyer with Barclays has risen from 31 to 34, with many choosing to buy their “forever home” as their first property.
Lee Chiswell, head of mortgages at Barclays, said: “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.
“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.”
