Skipton Building Society has removed its maximum loan size cap for first-time buyers.

It said this follows a 20% increase in UK house prices between 2011 and 2015, with London prices increasing 53% across the same period.

Its cap of £500,000 now been scrapped, a move that applies both to the building society and lending arm Skipton Intermediaries.

Skipton said the move will support London and southern housing markets in particular, where first-time buyers with good jobs and deposits struggle to meet lenders’ affordability criteria. 

With average monthly rent payments in London estimated at £1,500, removing the maximum loan size cap will help more to get on the housing ladder.

Kris Brewster, Skipton’s head of products, said the move came after listening to customer and broker feedback.

“It’s important that we continually review our lending criteria, as we all know how fast the UK mortgage market changes.

“People who have good jobs, earning very healthy salaries, and have saved up large deposits, are still being priced out of the south and London markets.

“This move will enable more first-time buyers to move away from renting, and to get the keys to their first home.”