Halifax is making it easier for first-time buyers to get a mortgage with a new update starting Thursday, August 29. They are raising the maximum Loan-to-Income (LTI) limit to 5.5x. This change is available to those with a household income of £50,000 or more, a loan-to-value (LTV) ratio of 90% or less, and who are not using Shared Ownership or Shared Equity schemes.

Under the new limit, first-time buyers with a £50,000 income can now borrow up to about £275,000, compared to the previous maximum of around £224,500. This increase helps first-time buyers who struggle to get enough money to buy a home.

Key Points of the New Offer:

• Higher LTI Limit: The LTI limit is now 5.5 times your annual income, allowing you to borrow more for your mortgage.
• More Lending: The “First Time Buyer Boost” program gives up to 22% more in borrowing power. It’s for those who need to borrow at least 4.5 times their income.
• Automatic Application: You don’t need to choose a special scheme. The new LTI limit will be automatically applied to your mortgage application.
• Joint Applications: If you’re applying with someone else, only one person needs to be a first-time buyer. Make sure this person is listed as the primary applicant to get the higher LTI.

Important Details:

• New Applications Only: The updated LTI limits apply to applications started from August 29. Applications submitted before this date will not qualify for the higher limit.
• Exclusions: The new limits do not apply to Shared Equity or Shared Ownership schemes. If you’re self-employed, current LTI limits will still apply.
• Applicant Order: If the first-time buyer is listed as the 3rd or 4th applicant on a joint application, they won’t get the LTI boost. Some applicants with lower credit scores may still receive the standard LTI limits. It’s best to use a Decision in Principle (DIP) to check the maximum amount you can borrow.

Halifax’s new mortgage terms are designed to help more first-time buyers afford their first home by offering increased borrowing limits.