Halifax’s move to raise the loan-to-value (LTV) ratio of its shared ownership mortgage from 80% to 90% highlights a changing attitude from lenders as they acknowledge an ever-increasing appetite for shared ownership from potential buyers.
With a growing number of lenders - Virgin Money to name one - now offering 90% LTVs for shared ownership, Halifax is by no means alone in its decision. However, its position as the country’s biggest mortgage lender makes this a significant milestone that has positive implications for shared ownership.
Crucially, it will bring home ownership within reach of more people up and down the country by reducing the size of the deposit needed to secure a mortgage. While schemes like Help to Buy have their strengths, they don’t solve the problem for people on average-to-low incomes as house prices and deposits continue to rise.
Shared ownership allows for a more gradual climb up the ladder without the need for the large deposit that is a barrier for so many.
Halifax’s decision will further galvanise the sector to provide more choice. The UK’s housing need is varied, requiring the sector to offer an array of options.
Removing the barriers to schemes like shared ownership is key to this and will ultimately help more people to own homes.