loyds ftb deal- lend a hand 95% ltv

laura2877

lloyds have introduced a ftb mortgage called lend a hand.
you need at least 5% deposit.
sombody else needs the rest in savings to make it up to 25%.

the rates are 4.99% for 3yrs £995 fee,
5.29% for 3yrs £495 fee,
5.69% for 3yrs no fee.

it is good if you have relatives or friends who have spare savings but don't necessarily want to give or lend it to you.

their savings are held in a lloyds account for 3 years earning a quite respectable 3.5% interest.

After the three years as long as the ltv is 90% or less the savings can be released.

the catch- if the porperty gets repossessed and they can't recover the money borrowed, they will take money from the savings to cover the loss.

lloyds seem quite generous with their earning multipiers too.

Myself and my partner earn £14k and £18k and we coud borrow upto £135k.

We have arranged a loan of £60k as we've managed to find a bargain property and it is all going smoothly.

it is a branch only mortgage so you will have to make an appointment to see an advisor.

there is also a valuation fee we've paid £275 for properties £50k-£100k.

also £99 application fee.

I hope this is helpful at least like one bank is trying new ways to help out ftb.

SelbyJay_2

Useful if someone is able to lend you 20% of the property's value which, i suspect, many people arent : (

skiTTish

We have this mortgage too
The bank stand to do well from it though ,they don't do it out of the goodness of their heart
1)The chances of they money being released after 3.5 yrs is slim and they stop paying interest on it after that time so they are quids in!
2)Also its a good way of weedling people with a few quid saved out of the woodwork so they can flog them other products (insurance )
3)And as you will probably have to stay with a TSB mortgage after the 3.5 yrs ,you are forced into whatever rate they decide to charge after that time

Still I am sure you considered all of these things before applying ,just as we did