Halifax First Time Buyer Boost: Increased Maximum Borrowing for UK First-Time Buyers

Unlock Higher Mortgage Borrowing with Halifax: The First Time Buyer Boost Update

Halifax, one of the UK’s leading mortgage lenders, is reaffirming its commitment to supporting new homeowners with its latest First Time Buyer Boost initiative. Following £4 billion in previous funding, Halifax has pledged an additional £4 billion specifically to help first time buyers who need to borrow up to or above 4.5 times their annual household income. This update offers expanded opportunities for those aiming to step onto the property ladder in 2025.

What’s New: Increased Loan-to-Income Limits for First-Time Buyers

Halifax now allows eligible first-time buyers to borrow up to 5.5 times their annual employed household income on new purchase applications, subject to meeting certain criteria. This policy is designed to help buyers access higher-value properties and accelerate their journey to home ownership.

• Maximum Loan-to-Income (LTI): Up to 5.5x for qualifying first-time buyers (previously approx. 4.5x)
• Household Income Threshold: Total employed income of £50,000 or more required
• Loan-to-Value (LTV): 90% or less
• Exclusions: Not available for Shared Ownership or Shared Equity schemes

For example, an employed household with £50,000 annual income could see their maximum loan amount rise from approximately £224,500 to around £275,000 under the new policy—dramatically boosting purchasing power for many aspiring homeowners.

Eligibility Criteria and Key Details

• At least one applicant must be a first-time buyer on a joint application (ensure they are entered as applicant one).
• Higher LTI applies automatically in Halifax’s affordability calculation—no special scheme selection required.
• Standard lending criteria and credit score requirements apply; in some cases, standard LTI may still apply based on credit profile.

Prospective buyers and their advisers should complete a Decision in Principle (DIP) to clarify the maximum loan available for their circumstances.

Why This Matters for First-Time Buyers

This update from Halifax is especially beneficial for:

• First-time buyers with strong employed income but needing to borrow more to purchase in competitive markets.
• Applicants purchasing with high loan-to-value (up to 90%).
• Those who do not require Shared Ownership or Shared Equity solutions.

By enabling higher affordability limits, Halifax is providing first-time buyers with increased flexibility and practical options, making the dream of home ownership more accessible than ever.

Standout Features of Halifax Mortgages

• Specialist first-time buyer support: Market-leading initiatives like the First Time Buyer Boost.
• Streamlined application process: Enhanced affordability checks with automatic application of the new LTI.
• Longstanding reliability: Halifax is a trusted UK mortgage lender with a strong track record of supporting new homeowners.
• Comprehensive tools and resources: Calculators, policy literature, and support for advisers and applicants (useful tools here).

How to Take the Next Step

Interested in making the most of Halifax’s First Time Buyer Boost or finding the right mortgage for your needs? Contact our expert advisory team today for tailored advice, up-to-date rates, and to see how much you could borrow under these new criteria. Let us guide you towards your property goals with confidence.

For more information, visit Halifax Intermediaries’ official First Time Buyer Boost page or get in touch with our brokers for a personalised assessment.

FAQs: Halifax First Time Buyer Boost

• Who qualifies for Halifax’s First Time Buyer Boost?
  Answer: Employed first-time buyers or joint applicants (with at least one FTB), total household income of £50,000+, up to 90% LTV, and not using Shared Ownership/Equity.
• How much can I borrow as a first-time buyer with Halifax now?
  Answer: Eligible applicants can borrow up to 5.5 times their employed income—e.g., a £50,000 income allows a loan of up to ~£275,000, subject to other lending criteria and credit checks.
• Are there restrictions on property type or region?
  Answer: The main exclusions are Shared Ownership/Equity. Check specific property and postcode eligibility with your adviser for full details.
• How can I check my eligibility under the new criteria?
  Answer: Complete a Decision in Principle (DIP) with your mortgage adviser to clarify how much you may borrow with Halifax.
• What if I don’t meet the minimum income or credit requirements?
  Answer: Other Halifax products may be available. Our mortgage brokers can advise on alternative lenders or products suited to your profile.