Lloyds backs first-time buyers with £5bn pledge

Permalink: Lloyds backs first-time buyers with £5bn pledge
by Gill Montia

Lloyds Banking Group is on track to lend £5 billion to first-time homeowners by the end of the year, helping over 50,000 people get a foot on the property ladder.

The group says it is currently providing mortgages for one in four first-time buyers, making it the largest lender in this market.

One in three mortgages on affordable housing schemes are provided by its Halifax division (including shared ownership and shared equity) and a third of all lending on UK new build properties is funded by the group.

Lloyds’ mortgage director, Stephen Noakes, comments: “With our unrivalled commitment to affordable housing, new build through Halifax, and innovative products such as Lloyds TSB’s Lend a Hand, we’re not targeting our support at a select few, but making home ownership a reality for a whole generation of buyers.”

Mr Noakes is also keen to dispel some of the myths about first-time buyer mortgages, saying that homes can be purchased with a 10% deposit, or even 5%, through the NewBuy scheme.

Last week, Halifax and Lloyds TSB reduced rates on NewBuy and new build loans and later this week, first-time buyers with a 10% deposit will be able to benefit from a £1,000 cashback deal about to be launched by Halifax.