Lloyds TSB new first time buyer package "Lend a hand" - up to 95% LTV at fixed low interest! - HotUKDeals
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Lloyds TSB have released a new package for first time buyers called lend a hand.

- 95% LTV
- Low initial cost
- Low interest rate (around 1% less than other similar packages) - and FIXED for 3 years

The catch? There is one - it is as follows:

Someone needs to guarantee the mortgage. This is done by placing £20k in a LTSB Savings account at 3.1% fixed for three years. After this, these savings can be withdrawn.

Yes - this is limited to a subset of people, and yes there is a catch.

However, the savings accoutn rate is fairly competitive (if not market leading) and certainly the mortgage itself is by far and away market leading for this TYPE of mortgage (FTB, 95% LTV).

From the website:



With the Lend a Hand Mortgage, you only need a 5% cash deposit, plus the backing of someone who wants to help you onto the property ladder by putting their savings up as additional security for the mortgage.
Your Helper will need savings equal to 20% of the property value.
Your deposit of and the savings of your helper must equal 25% of the property value.

They still earn interest on their savings, but it means that you can benefit from the lower mortgage rates normally available to customers with a 25% deposit.
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MrShed Avatar
7y, 7m agoFound 7 years, 7 months ago
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(17) Jump to unreadPost a comment
Comments/page:
#1
Apologies - when I said £20k, I meant 20%.
#2
Tractor production UP!
1 Like #3
heated, good deal in the current market
#4
Financial suicide in the current housing market!!!!
Your 5% deposit and 20% investment will be eaten up in negetive equity in the next few years.
Voted cold.
#5
BruTamUK
Financial suicide in the current housing market!!!!
Your 5% deposit and 20% investment will be eaten up in negetive equity in the next few years.
Voted cold.


Can you show any market research to back this up buddy? :)
#6
BruTamUK
Financial suicide in the current housing market!!!!
Your 5% deposit and 20% investment will be eaten up in negetive equity in the next few years.
Voted cold.


Doesn't need any proof, he must have a crystal ball! :whistling:
#7
WOW, we have one month of house prices rising(according to the Halifax that is) and they kick off with more reckless lending.
#8
:whistling:Just tried to convince my father in law... he didnt like it!!!!:w00t:
#9
LC70;5411136
WOW, we have one month of house prices rising(according to the Halifax that is) and they kick off with more reckless lending.


this deal came out before both the Halifax and Nationwide reported rises
#10
adr0ck
this deal came out before both the Halifax and Nationwide reported rises


That makes it even more reckless then.
#11
I would think very seriously about ever using Lloyds

My son and I have two large complaints with the Financial Ombudsman, now elevated to an Adjudicator, including:

[LIST]
[*]Failing to close an account
[*]Not being able to come up with a consistent settlement figure (3 tries, all different)
[*]Making unauthorised transactions
[*]Unfair charges
[*]Failing to respond to complaints
[*]Being unable to justify charges
[*]Failing to freeze charges during an agreed time to submit a final payment.
[*]Ignoring written instructions
[/LIST]

Apart from that they've been fine.
#12
I'm not a fan of Lloyds either. Recently moved my business account (very unhappy with their Birmingham 'business centre') and thinking of doing same with personal account of 30 years standing. Wouldn't dream of taking out a mortgage with them.
#13
BruTamUK
Financial suicide in the current housing market!!!!
Your 5% deposit and 20% investment will be eaten up in negetive equity in the next few years.
Voted cold.


Errrr.....buying houses whilst at rock bottom?

Yep "financial suicide" :thinking:
#14
LC70
WOW, we have one month of house prices rising(according to the Halifax that is) and they kick off with more reckless lending.


Whats reckless about the equivalent of a 75% LTV mortgage?
#15
MrShed
Whats reckless about the equivalent of a 75% LTV mortgage?


So once I take back my 20%(after three years), that I lent to my buyer. Does this mean that Lloyds are going to let them off for that 20% of the mortgate? If so this is indeed a great deal!

This is a 95% mortgage which is stupidity in the current market.

Oh yeah, I forgot we have hit the bottom of the housing drop and unemployment has stopped rising as have home repos and as a bonus car sales are shooting through the roof. :santa:
#16
Missing the point LC70.

It is not a 95% mortgage, from the LENDERS perspective, as their exposure is never more than 90%, and initially is only 75%.

And house price falls are, if not levelling out, certainly slowing.

Know your economy and product before commenting please.
#17
MrShed


Know your economy and product before commenting please.


This is a bad deal for the first time buyer, but a great deal for Browns bank, and if I'm willing to invest 20%, I'm sure there is a better deal available.

As for the economy...... :thumbsup:

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