First time buyer mortgage scheme
Lloyds TSB and South Kesteven District Council have joined forces to help first time buyers purchase a home with a deposit of just 5%.
The Local Lend a Hand product is now available in local branches of Lloyds TSB. For an appointment to find out more information visit your local Lloyds TSB Bank or log on to http://www.lloydsbank.com/mortgages/offers/lend-a-hand.asp.
South Kesteven District Council has initially set aside £1m which should help 30-40 buyers on to the property ladder.
First time buyers often say that raising a deposit is the biggest challenge they face when looking to take their first steps onto the property ladder.
South Kesteven council leader Linda Neal said: "We know that lots of local people can afford monthly mortgage payments but cannot move into the market because they haven't got the deposit."
Stephen Noakes, commercial director, mortgages commented: "With the launch of Local Lend a Hand in South Kesteven, we're making the housing market more accessible to more people. We know that many young people turn to the Bank of Mum and Dad to get their foot on the ladder, but that's not a solution for everyone."
Subject to Lloyds TSB's usual lending criteria, borrowers are able to select an existing property in the area covered by South Kesteven District Council up to a maximum loan of £118,750. This does not include new build homes. First time buyers will put down 5% of the property price, and South Kesteven will provide a cash backed indemnity of up to 20% as additional security.
The first time buyer owns the property in its entirety, and will have access to a range of products at a lower rate of interest than would normally be available for this level of deposit.