- Lloyds Banking Group is introducing a new mortgage product requiring a deposit of just £5,000, designed to help first-time buyers, especially renters, achieve homeownership.
- Available from 18 May through Lloyds, Halifax, and independent brokers, this offering aims to significantly cut the time prospective buyers spend saving for a deposit.
- The mortgage applies to properties valued up to £300,000, features a maximum loan-to-value of just over 98 per cent, and comes with a five-year fixed interest rate of 5.89 per cent.
- Applicants, both employed and self-employed, can borrow up to four-and-a-half times their salary, subject to strict affordability and credit checks, with a borrowing term of up to 40 years.
- The initiative addresses the increasing average age of first-time buyers, with Lloyds saying that many renters already pay monthly amounts comparable to mortgage instalments.
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