There is great news for First Time Buyers that are trying to get on the property ladder but haven’t managed to save a deposit to be able to put down against a property.
This great new product has recently been unveiled by Lloyds and is available to those who meet their lending criteria and have the backing of family to be able to assist with the mortgage.
The new deal referred to as the ‘Lend a Hand’ deal will offer First Time Buyers the chance to purchase their new home and borrow up to £500,000 without the need for them to put down a deposit.
With most other lenders currently looking for a minimum of a 5% deposit before they will consider providing a mortgage offer, Lloyds will be the answer to many people’s first property problem.
The deal will be available to those who meet the lending criteria but also have the backing of a family member or members such as parents, grandparents or close relative. Lloyds will require the family member to put a sum of money, equal to that amounting to 10% of the property wishing to be lent on, into a Lloyds savings account. There will be an interest rate of 2.5% offered on the money in the savings account allowing for a marketable return on their investment as well as the right to be in control of the amount lent to their family member.
The 100% mortgage on offer is structured as a 2.99% Fixed Rate deal over a 3 year term, during this time, the family members offering the financial backing will not be able to access their savings.
Does this sound like something you’d like to explore as a First Time Buyer and want to finds out if you’re eligible? Get in touch, and one of our Mortgage Advisers can help. You can call us on 03333 44 85 11 or email enquiries@onlinemortgagecalculators.co.uk