New blow for first-time buyers as Lloyds axes popular ‘family mortgage’ deal that allowed purchasers with no deposit to get on housing ladder
- The bank has stopped accepting new applications for its Lend a Hand mortgage
- First-time buyers as 95 per cent of loan to value deals disappear from the market
- Conditions on those deals that are still available have also become stricter
Lloyds Bank has axed its family support mortgage deal that allows first-timers to buy a home without a deposit.
The bank has stopped accepting new applications for its Lend a Hand mortgage.
This allows a family member to deposit 10 per cent of the purchase price into a savings account linked to their child’s mortgage.
Lloyds Bank has axed its Lend a Hand mortgage that allows first-timers to buy a home without a deposit
The removal of the deal is another blow for first-time buyers who have seen 95 per cent loan to value deals disappear from the market.
Conditions on those deals that are still available have also become stricter.
The deposit on the Lend a Hand mortgage was paying 2.94 per cent interest before it was withdrawn.
Lloyds would then advance up to 100 per cent of the purchase price.
Nationwide returned to the market in July with its 90 per cent loan to value range exclusively for first-time buyers.
But it said no more than 25 per cent of the deposit could be gifted by parents.
The removal of the deal is a blow for first-time buyers as 95 per cent loan to value deals disappear from the market (stock image)
The Barclays Springboard mortgage, similar to the Lloyds deal, is still available.
Family Building Society brought back its 95 per cent loan to value Family mortgage in June.
Parents must hand over savings or have a charge on their property to guarantee the loan.