Lloyds Bank

Lloyds extends new-build lending

Lloyds Banking Group has introduced a number of changes to its lending policy for new-build properties as it looks to offer a greater choice to homebuyers.


The lender has extended its cap on new-build mortgages available through Halifax from 80% to 85% LTV as well as increasing the maximum LTV for those buying through a shared ownership scheme.

A managed panel of builders and brokers will remain for borrowers seeking to apply for a standard 85-95% mortgage.

Lloyds also revealed that customers buying a new house or flat with a registered provider or housing association through a shared ownership scheme can now apply for up to 90% LTV.

Douglas Cochrane, head of housing development at Lloyds Banking Group, said helping to provide a greater choice and access to mortgage products was fundamental to supporting the housing market.

“Through Lloyds Banking Group’s Helping Britain Prosper plan, we have committed to lending £10bn to first-time buyers this year, and the changes to our shared ownership lending policy will help us support this goal.

“Providing a broader range of options will help brokers meet more of their customers’ needs, and together with market-leading policy and product support, helps underline the added value of our specialist housing development team.”

Craig Hall, new build manager at Legal & General Mortgage Club, said these changes were a great boost to the new-build lending market.

“Improvements like this are key to the growth of the sector and also shine the spotlight on shared ownership as a realistic alternative option for first-time buyers.

“A greater number of lenders willing to lend on shared ownership properties adds to the legitimacy of the tenure, and will help to increase the take up, meaning more first-time buyers are able to get on the property ladder in the long run.” 

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