For Your Protection and Peace of Mind
All our loans & procedures are approved and qualified by our fully experienced compliance team to ensure they meet our high standards and comply with all current regulatory requirements
 News |
|
Search Categories |
| Archive News |
Lloyds offers 95% first-time buyer mortgage
Lloyds TSB has announced a new 95 per cent mortgage aimed at helping first-time buyers get their foot on the property ladder.
The Lend a Hand mortgage offers an interest rate of 4.39 per cent, which Lloyds says is £100 a month less than the average 90 per cent mortgage rate of 5.98 per cent.
However, the deal requires relatives or friends of the buyer to hold savings in a special account, over which the bank takes a legal charge.
A contribution of 25 per cent of the value of the house must be provided, of which at least five per cent must come from the first-time buyer.
At the end of the three-year deal, if the mortgage has moved from 95 to 90 per cent loan to value, the bank can remove the legal charge and the buyer can operate the mortgage independently.
Stephen Noakes, commercial director of mortgages at Lloyds Banking Group, said: "First-time buyers are essential to returning the housing market back to good health because every first time buyer helps, on average, four other households move."
Recently it was reported that some first-time buyers were forced to withdraw from purchases at the last minute because the government suffered a cash shortfall for its MyChoice Homebuy scheme.