Lloyds TSB is extending its direct-only Lend a Hand scheme, which grants mortgages with 5% deposits, to home movers today.
The product was only available to first time buyers but will now target home movers who do not have the large deposit.
With Lend a Hand borrowers can take out a mortgage with a 5% deposit of and access a rate that is the equivalent of products available for borrowers with a significantly bigger down-payment.
The deposit can be so low because funds are backed up with the savings of helper, such as a parent, grandparent or other family member.
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 3.75% savings rate but a legal charge is taken over the savings to offset the risk.
Stephen Noakes, commercial director of mortgages, says: “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 launching a campaign looking at the challenges facing first time sellers in today’s market.
A good time to visit our mortgage finder
http://www.nfoppmortgages.co.uk/Home.aspx?ID=3560
Article from: www.mortgagestrategy.co.uk 08/07/10
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