Halifax Raises Loan-to-Income Limit to 5.5x, Strengthening Borrowing Power for First-Time Buyers

Halifax is making it easier for first-time buyers to secure a mortgage. Starting Thursday, August 29, the maximum Loan-to-Income (LTI) limit will increase to 5.5x. This change is available for those with a household income of £50,000 or more, a loan-to-value (LTV) ratio of 90% or less, and who are not using Shared Ownership or Shared Equity schemes.

With the new limit, a first-time buyer earning £50,000 could now borrow up to about £275,000. This is an increase from the previous maximum of around £224,500. This adjustment aims to help first-time buyers who find it hard to borrow enough money to purchase their home.

Key Details:

• Increased LTI Limit: The LTI limit is raised to 5.5x your income. This allows you to borrow more money for your home.
• Extra Lending: The “First Time Buyer Boost” provides up to 22% more in lending. This new program helps those who need to borrow at least 4.5x their annual income.
• Automatic Boost: The new LTI limit will automatically apply to your mortgage application. You don’t need to select a special scheme.
• Joint Applications: If you are applying with someone else, only one person needs to be a first-time buyer. Make sure this person is listed as the primary applicant to qualify for the higher LTI.

Important Information:

• New Applications Only: The new LTI limits apply to applications started from August 29. If you applied before this date, you will not benefit from the increased limit.
• Exclusions: The higher LTI does not apply to mortgages involving Shared Equity or Shared Ownership schemes. If you are self-employed, current LTI limits will still apply.
• Application Order: If the first-time buyer is listed as the 3rd or 4th applicant, the higher LTI limit will not apply. Some applicants with lower credit scores may still receive the standard LTI limits. It’s advisable to check the maximum amount you can borrow with a Decision in Principle (DIP).

Halifax’s updated mortgage terms are designed to help more first-time buyers afford their first home by increasing the amount they can borrow.

We are always available with professional and knowledgeable mortgage consultants to answer all of your questions. To make this borrowing process smooth we collaborated with Halifax and made the process easier for you. Our how much I can borrow calculator can give you an estimation of the loan amount. Get to know your estimated loan amount and get the best possible results. For detailed and professional advice you can immediately Book Our Free Consultation. Our team is ready to support you throughout your mortgage process and guide you making right decisions.