Lloyds TSB is extending its Lend a Hand proposition to homemovers as well as first time buyers.
It should help homeowners looking to move home, but do not have the large deposit required for many of the products in today’s market.
With Lend a Hand, borrowers can take out a mortgage with a deposit of 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 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 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, said: “It’s not always easy to pull together a big deposit in today’s market
