Following recent changes to minimum income requirements on its First Time Buyer Boost range, Halifax has launched new first-time buyer mortgage products, with rates reduced by up to 0.20%.
Two-year fixed rates are down by up to 9bps, now starting from 4.16% up to 90% LTV and 4.63% between 90-95% LTV, both with a £999 fee. Fee-free products start from 4.36% up to 90% LTV and 4.83% up to 95% LTV.
Three-year fixed rates have reduced by up to 0.20%, with £999 fee products down to 4.45% up to 90% LTV and 4.80% at 90-95% LTV. Fee-free equivalents have decreased to 4.62% and 4.97% respectively.
Five-year fixes have seen cuts of up to 8bps, starting at 4.28% to 90% LTV and 4.74% to 95% LTV, with fee-free rates at 4.39% and 4.85%.
Earlier this week, Lloyds Banking Group announced that it is making a further £1bn of lending available to first-time buyers by reducing the minimum household income required for First Time Buyer Boost), meaning more people can borrow up to 5.5x their income with Lloyds or Halifax.
The minimum household income needed to qualify for FTB Boost has reduced from £50,000 to £40,000.
Increasing the loan-to-income (LTI) available for these customers to 5.5x (from 4.49x) will increase the maximum loan available by 22%. For example, a customer with £40,000 income and 10% deposit can now borrow £220,000, up from £179,600. Through this change, another £1bn of mortgage lending is available to first-time buyers.
