New blow to first-time buyers as Lloyds sets up popular “family mortgage” deal that allowed deposit-free buyers to climb the housing ladder
- Bank stopped accepting new applications for its Lend a Hand mortgage
- First-time buyers while 95% of loan-to-value contracts disappear from the market
- The conditions on the offers still available have also become stricter.
Lloyds Bank has ended its Family Support Mortgage deal that allows newbies to buy a home without a deposit.
The bank has temporarily stopped accepting new applications for its Lend a Hand mortgage.
This allows a family member to deposit 10 percent of the purchase price into a savings account linked to their child’s mortgage.
Lloyds Bank canceled its Lend a Hand mortgage which allows first-time buyers to buy a home without a deposit
The cancellation of the agreement is another blow for first-time buyers, who have seen 95% of loan-to-value agreements disappear from the market.
The conditions on the offers still available have also become stricter.
The deposit on the Lend a Hand mortgage carried 2.94 percent interest before it was withdrawn.
Lloyds would then advance up to 100 percent of the purchase price.
Nationwide returned to the market in July with its 90% line of loans exclusively for first-time buyers.
But he said no more than 25% of the deposit could be offered by parents.
The removal of the agreement is a blow for first-time buyers, as 95% of loan-to-value agreements disappear from the market (stock image)
The Barclays Springboard mortgage, similar to the Lloyds agreement, is still available.
The Family Building Society reduced its loan by 95% to value the family mortgage in June.
Parents must hand over savings or have a charge on their property to secure the loan.