Lloyds' small deposit mortgage deal

Homeowners with only a small amount of equity in their homes are being offered a chance to trade up the property ladder with a new mortgage from Lloyds TSB, it has been announced.

The group's Lend a Hand mortgage has been extended to cover existing homeowners after previously being an option that only first-time buyers could take up.

People with just a 5% deposit or equity stake will be able to receive the same mortgage rates as those who have 25% to place under the deal. To qualify, the buyer must have a relative who has the savings equivalent of 20% of the property's value with the bank.

Those who have their current account with Lloyds can access a rate of 4.79% on a three-year fixed rate mortgage with an arrangement fee of £895, while those who bank elsewhere can get a rate of 4.99%.

Both rates are considerably cheaper than the best rate available across the market for someone borrowing 95% of their home's value of 6.14%.

Parents or grandparents who hold their savings with the group as part of the deal will receive interest of 3.75%.

When the three-year fix has finished they can withdraw their savings, as long as the homeowner has built up equity of 10% in their property

Back to blog home

Disclaimer

All content is for informational purposes only and is the opinion of the author. Nothing on this website should be interpreted as "advice". Money Dashboard Ltd make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use.

Related articles

Download app
×
Important Information: Money Dashboard Neon and Classic mobile and web apps are now closed as of 31/10/2023. Please see our FAQs for more information.
FAQs
1