Coventry for intermediaries has strengthened its support for first-time buyers by introducing lending of up to 6.5 times income for eligible customers, helping more people maximise their borrowing potential when taking their first step onto the property ladder.
Available on residential purchases up to 95% loan-to-value (LTV), the enhanced loan-to-income (LTI) multiples recognise that borrowing power can be just as important as saving for a deposit for many first-time buyers.
Details include:
- Borrowing of up to 6.5x income for eligible first-time buyers
- Minimum income of £30,000 for sole applicants, and combined income of £50,000 for joint applicants
- Available up to 95% LTV
- All applications remain subject to the lender’s affordability assessment
The lender has also increased lending limits for new-build properties. Details include:
- Lending of up to 95% LTV on owner-occupied new-build houses.
- Lending of up to 85% LTV on owner-occupied new-build flats.
- Lending of up to 75% LTV on buy-to-let new-build flats.
Kevin Purvey, Director of Mortgage Distribution, at Coventry Building Society, said:
"We know that many first-time buyers have strong incomes, but their borrowing power doesn't quite stretch far enough to buy the home they want. By offering eligible customers the opportunity to borrow up to 6.5 times their income, we're helping more people take that first step onto the property ladder.
"Many first-time buyers are also considering new-build properties, whether that's because they're looking for a more energy-efficient home or the appeal of a brand-new property. By increasing our loan to value limits on new-build homes alongside these enhanced income multiples, we're giving customers greater flexibility and helping them access a wider range of homes.
"Together, these changes give brokers more options to support customers with different needs and circumstances, making it easier for more people to find a solution that's right for them."
David Hollingworth, Associate Director at L&C Mortgages, said:
“First time buyer appetite remains strong, but all too often aspiring homeowners find themselves held back by the challenge of saving a big enough deposit to make up the difference between their potential mortgage borrowing and the purchase price.
"Building those savings while paying rent and dealing with the higher cost of living can feel like an impossible job. Improved lender flexibility to enhance mortgage borrowing options for those that can demonstrate affordability can completely reframe the potential timeline to making home ownership a reality.”
