For many first-time buyers, earning a reasonable income is no longer enough to secure the mortgage they need. Rising property prices mean the amount someone can borrow—not just the size of their deposit—can be the biggest obstacle.

A change from Coventry Building Society could now give some buyers greater borrowing power.

What has changed?

Coventry has introduced lending of up to 6.5 times income for eligible first-time buyers purchasing a residential property.

The enhanced borrowing is available at up to 95% loan-to-value, meaning some buyers may only need a 5% deposit.

Applicants must have a minimum income of:

• £30,000 for a sole application

• £50,000 combined for a joint application

Every application will still need to pass Coventry’s full affordability assessment and satisfy its lending criteria.

What could 6.5 times income mean?

At the maximum income multiple:

• A sole applicant earning £30,000 could potentially borrow up to £195,000.

• Joint applicants earning £50,000 could potentially borrow up to £325,000.

These figures are illustrations rather than guaranteed borrowing amounts. Existing credit commitments, household expenditure, mortgage term, credit history and other circumstances can all affect how much a lender is prepared to offer.

Borrowing more may help someone purchase the right property, but it also means taking on a larger financial commitment. The monthly repayments must remain comfortable both now and if circumstances change.

Greater support for new-build buyers

Coventry has also increased the maximum loan-to-value available on certain new-build properties.

The lender may now consider:

• Up to 95% LTV on owner-occupied new-build houses

• Up to 85% LTV on owner-occupied new-build flats

• Up to 75% LTV on buy-to-let new-build flats

This could be particularly helpful for first-time buyers considering a new-build house who have sufficient income but are still building their deposit.

Is borrowing at 6.5 times income right for you?

A higher income multiple can improve your options, but the maximum available mortgage is not necessarily the amount you should borrow.

Before proceeding, it is important to consider the monthly payment, the mortgage term and how your budget would cope with future changes to interest rates or household costs.

Mortgage criteria also vary considerably between lenders. Being unable to borrow enough from one lender does not automatically mean that every lender will reach the same decision.

If you are considering buying your first home, speak to us before assuming that the property you want is beyond your budget. We can assess your income, deposit and commitments, compare the available lenders and help you understand what may be realistically affordable.

Chetwood Lloyd Mortgages offers independent, fee-free mortgage advice with access to more than 100 lenders.

Your home may be repossessed if you do not keep up repayments on your mortgage.