April Mortgages has launched a new build mortgage for borrowers with a 10% deposit who want to buy a house or apartment.
Customers can borrow up to seven times their income if they take out a ten-year fixed rate or earn £50,000 or more.
April Mortgages, which already made headlines this year with the launch of a 100% no-deposit mortgage, said it was creating its latest deal as the new build sector continued to face challenges from stricter lender criteria.
It explained that while incentives for builders were common, they could also reduce the maximum number of loans available for some lenders. However, the new April offer offers builders incentives of up to 5% without penalty.
It also accepts multiple income types, including self-employed, and is available for fixed rates between five and fifteen years.
The 90% loan-to-value (LTV) mortgage deal is available through brokers working with April Mortgages.
Terry Higgins, group director of The New Homes Group Mortgage Services, said: “This is exactly what the new build market needs at the moment and I believe it will enable more first-time buyers and home movers to purchase a new build home.
“Greater affordability in the mortgage market is always welcome news for buyers, especially in the new build sector, where challenges around deposit levels, incentives and lender criteria can often make the journey more complex.
“April’s new product range helps to remove some of these barriers while offering customers certainty and flexibility. However, it is important that buyers seek advice from a mortgage broker. As the UK’s leading specialist in new build mortgages, we are pleased to be working closely with April Mortgages.”
Meanwhile, Adrian MacDiarmid, head of mortgage lender relations at property developer Barratt Redrow, believes the product will help ‘address the frustrations’ it hears ‘day in day out from Londoners who feel priced out of the market’.
“In many cases, it could actually unlock homeownership faster than they think,” he said.
“We are known for our proactive relationship with the mortgage industry and this innovative product is no different. The launch also coincides with our special Step on the Ladder campaign, to improve homeownership education and address the concerns of the next generation of buyers.”