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January 29, 2019

Lloyds Bank unveils new mortgage scheme for first-time borrowers

Lloyds Bank has introduced a new scheme, which will offer first-time buyers 100% mortgages if the buyer’s family offers 10% of the value of the mortgage as security into the bank’s savings account.

The bank will offer a 2.5% interest on the deposited money, which will be refunded to the family members after three years.

The new mortgage scheme is fixed at 2.99% for a three-year period.

The maximum amount a buyer can borrow is £500,000 and the maximum term is 30 years.

The service can be initially availed by borrowers in England and Wales.

Lloyds group director of retail Vim Maru said: “We are committed to lending £30billion to first-time buyers by 2020 as part of our pledge to help people and communities across Britain prosper – and Lend a Hand is one of the ways we will do this.

“At the heart of this market-leading product is helping to address the biggest challenge first-time buyers face getting on to the property ladder, while rewarding loyal customers in a low rate environment.

“Although times have changed, children still have a similar ambition to their parents – to own their own home. Lend a Hand helps parents to invest in their children’s future and get the best return on their cash.”

In announcing the new service, the bank cited an internal research that found buying a house as the top most goal for people aged between 18 and 35 years.

The study also found 41% of parents willing to offer financial assistance to their children, but concerned that they will require the money later.

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