One of the biggest hurdles first-time buyers face is not being able to borrow enough to keep up with property prices. Halifax has just launched an innovative mortgage scheme called the First Time Buyer Boost—and it could make a big difference for those looking to get on the property ladder.
What is the First Time Buyer Boost?
Halifax’s First Time Buyer Boost is designed to help first-time buyers borrow up to 5.5 times their income, thanks to a new £2 billion fund. This means that if you’re earning £50,000 or more as a household, you could borrow up to 22% more than before. For many in Brackley, this increase could be the difference between buying a home and having to wait longer to save up more.
For example, on an income of £50,000, the maximum loan you could previously secure might have been around £224,500. With the First Time Buyer Boost, this figure jumps to approximately £275,000. That’s a significant increase, making homeownership more achievable in today’s competitive market.
Who Can Benefit?
To qualify for the First Time Buyer Boost, you’ll need to meet the following criteria:
- Income: A total employed household income of £50,000 or more.
- Loan to Value (LTV): The loan should be 90% or less than property’s value meaning you need a 10% deposit.
- Scheme Restrictions: This offer isn’t available for those using Shared Ownership or Shared Equity schemes.
This product could be right for those who might be just shy of the amount needed to buy their dream home. Whether you’re looking at new builds or older homes, this boost could be exactly what you need to secure that ideal property.
Why This Matters for First-Time Buyers
One of the biggest hurdles first-time buyers face is not being able to borrow enough. The First Time Buyer Boost from Halifax addresses this challenge, offering higher loan amounts to help you get over that financial hurdle.
While Halifax’s new scheme is exciting, it’s also worth noting that they’re not the first to introduce enhanced affordability options—Nationwide’s Helping Hand product has been around for a while. However, the addition of Halifax’s offering to the market is certainly a welcome development, giving buyers more choices and flexibility.
Get Expert Help Locally in Brackley
As mortgage brokers based in Brackley, we are here to help you navigate your mortgage options and find the most suitable mortgage deal for your needs. The property market can be daunting, but with products like the First Time Buyer Boost, more people can now turn their dream of homeownership into reality.
There may be a fee for mortgage advice. The precise amount will depend on your circumstances and will be agreed with you before proceeding but estimate this to be £499.
