Coventry for Intermediaries has introduced lending of up to 6.5 times income for eligible first-time buyers on residential purchases up to 95% LTV, subject to a minimum income of £30,000. Ecology Building Society has also launched a Scottish First Homes mortgage, offering up to 95% LTV on eligible new-build and existing homes valued at up to £300,000.
These product developments may widen options for some buyers, but they arrive against a difficult affordability backdrop. Industry reporting describes first-time-buyer affordability as the most squeezed since 2008, while Nationwide recorded subdued annual house-price growth of 1.6% in August. Higher borrowing capacity is not, by itself, evidence of suitability: advisers need to test resilience to future payment changes, all purchase costs and realistic household budgets.
AI can make educational content and document preparation more accessible for digitally native clients, but firms should be particularly careful that automated affordability illustrations do not overstate borrowing potential. A strong process combines understandable digital tools with adviser-led challenge, verification and a clear explanation of risks.
