First-time buyers can now get a mortgage on a new build property with a 5% deposit, down from 10%.
This means that based on the UK’s average house price of £289,099 the minimum deposit could be as low as £4,000.
Halifax said this makes greener homes more attractive and attainable for first-time buyers, because new builds tend to be more energy efficient.
Andrew Mason, head of strategic partnerships - housing, at Halifax, said: “We recognise that getting a deposit together is still the biggest hurdle faced by most first-time buyers, and these changes could reduce the minimum deposit required on an average house to as little as £4000.”
“This also underlines our confidence in the new build market and our support for the UK construction industry. We have worked closely with the industry and listened to their needs to develop these changes.
“Just as importantly, supporting new build homes supports the drive to net zero by making warmer, greener homes more accessible and attainable for potentially thousands of new buyers.”
Halifax has also removed the requirement that higher LTV new build loans (above 85%) be through developers on its panel.
Meanwhile the lender will now accept a 5% deposit on both new build flats and houses in shared ownership schemes run by housing associations.
Shared Ownership is available where the share being bought is between 25% and 90% of the property’s value.
Buyers can now borrow up to 95% of their share of the home with the lower deposit requirement.
