Yorkshire Building Society is making a number of positive changes this week, aimed at helping hard-pressed first-time buyers and other borrowers to overcome the challenges posed by affordability and high house prices.
This latest one follows research issued by the Society earlier this week, which showed 58% of non-homeowners aged 35-to-54 and 21% of those aged 18-to-34 could be giving up on buying their own home, leaving lifetime renters with a potential wealth gap of £2.6 million.
The Society is increasing the maximum amount it will lend to buyers of new build properties to 90% loan-to-value (was 85%) and enhancing its affordability assessment to help those who need to borrow more. From tomorrow (Thursday 5 September), people with a minimum household income of £50,000 (was £60,000) will be able to borrow up to five times their income with a minimum deposit of 10 per cent, including those buying new build properties.
Ben Merritt, director of mortgages for Yorkshire Building Society, said: “Increasing lending on new build properties is a positive step which will help borrowers with a smaller deposit, including first-time buyers, who have their hearts set on a brand new home.
“The affordability changes are designed to build on the work we started with the launch of our £5k Deposit Mortgage in March, and the latest example of our commitment to supporting borrowers in finding a place to call home. They follow our research and analysis which recognised the challenges faced by so many trying to get onto, or move up, the property ladder.
“Our analysis showing long term renters could be £2.6m worse off over their lifetime and, though stark, shows that homeownership is worth striving for, for all those who want it.”
The mutual has confirmed that applications must continue to meet standard lending policy and affordability requirements, reinforcing its commitment to responsible lending.
