Barclays is looking to significantly ramp up its presence in the new-build sector by loosening its lending criteria, Money Marketing understands.
The lender currently has a market share of less than 10 per cent in the sector but it is understood to be planning to increase this to around 17 per cent to bring it in line with its share of the intermediary mortgage market.
It is understood the lender is considering increasing its maximum LTV and lowering the pricing of its new-build products.
Presently, the lender will consider new-build applications up to 85 per cent loan-to-value for purchases and 80 per cent LTV for remortgages or additional borrowing. However, it will lend up to 95 per cent through the Government’s NewBuy scheme.
The two biggest players in the new-build sector are Lloyds Banking Group and Nationwide Building Society, which make up over half of all new-build lending, according to broker estimates. The Council of Mortgage Lenders does not collect detailed data on the size of the new-build sector or the market share of its participants.
Barclays managing director of intermediaries David Finlay says: “New-build is a growth area which we are looking at.”
Mortgage Advice Bureau new homes director Andy Frankish says: “It is good to hear Barclays is looking to do more in the new-build sector. Historically some lenders thought new-builds were overvalued and therefore risky but that is not the case anymore.”
Your Mortgage Decisions director Dominik Lipnicki says: “It is good news that a big player is looking to increase its presence in the new-build sector, which can be underserved.”
