Lloyds Tsb Offers Helping Hand to Homemovers

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Homeowners looking to move up the housing ladder have been handed a boost from lloyds tsb. Its popular lend a hand proposition is being extended to homemovers from today, 7 july.

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"The Lend a Hand mortgage has been a very successful way for people to take their first steps in the housing market. It's great news that it can now support those that are looking to move up the ladder too.

Homeowners looking to move up the housing ladder have been handed a boost from Lloyds TSB. Its popular Lend a Hand proposition is being extended to homemovers from today, 7 July.

The innovative product, previously only available to people pursuing a First Time Buyer mortgage, will be good news to homeowners looking to move home who do not have the large deposit required for many of the products in today's market.

First time sellers, especially those who bought their first home at the height of the market, are likely to benefit from the product as the market conditions have not allowed for any increase in their equity. It will also provide an option to those looking to move to a bigger home to start a family, but have been held back because of a small deposit.

With Lend a Hand, borrowers can take out a mortgage with a deposit of just 5%, but can access a rate that is the equivalent of products available for borrowers with a significantly bigger down-payment. This is because their funds are backed up with the savings of a helper, such as a parent, grandparent or other family member.

No other major lender offers deals for new customers moving house unless they have a deposit of at least 10%. Product pricing can also be expensive at this level. The lowest rate on the market for those with a 10% deposit is 5.99%. With Lend a Hand, borrowers can get rates from 4.79% with a £895 fee, even if they have a 5% deposit. At the same time, their helper benefits from a competitive savings rate (currently 3.75% AER Gross), as a legal charge is taken over the savings to offset the risk.

Stephen Noakes, commercial director of mortgages explains, "It's not always easy to pull together a big deposit in today's market, but this product can make the move to a new home not only more achievable, but more affordable.

"The Lend a Hand mortgage has been a very successful way for people to take their first steps in the housing market. It's great news that it can now support those that are looking to move up the ladder too.

"The product retains all of the features that make it so unique – borrowers can move with just a 5% deposit but without the high price tag that it would normally bring. At the same time, their family can provide their support and benefit from a competitive savings rate."

Lloyds TSB is also announcing the launch of a campaign looking at the challenges facing First Time Sellers in today's market. This will include how they manage the process of selling their first home, how they deal with fewer product choices and how they switch their mortgage product for the first time.

The Lend a Hand product will be available to homemovers from 7 July in Lloyds TSB branches.

NOTES TO EDITORS:

Product details:

  •     4.79% with a £895 fee (for Lloyds TSB current account holders)
  •     4.99% with a £895 fee    
  •     5.49% with no fee (for Lloyds TSB current account holders)
  •     5.69% with no fee

As with the Lend a Hand mortgage for First Time Buyers, the combination of the contribution by the parents and the first time buyer must equal 25% of the property's purchase price, which includes a minimum of 5% from the borrower.

Worked example: if the borrower was looking to move to a property worth £150,000:

  •     A 95% LTV mortgage of £142,500 is provided by Lloyds TSB at a three year fixed rate of 4.79% with a £895 fee.
  •     £7,500 is provided by the first time buyer as a deposit for the property.
  •     £30,000 will be provided by parents, grandparents or friends and held in the Lloyds TSB ‘Lend a Hand' savings account earning a fixed rate of 3.75% AER/gross for 42 months.

To see how much monthly mortgages at Lloyds TSB could cost you, visit our mortgage calculator.

Media enquiries:

Emma Partridge
Media Relations Manager
Tel: 01902 325180 / 07824 471 951

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