Lloyds TSB and Cardiff Council have joined forces to help first time buyers purchase a home with a deposit of just 5%. The Local Lend a Hand product will be available in local branches of Lloyds TSB from 27 April 2012.
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.
Responding to calls for further innovation in the first time buyer market, Lloyds TSB worked with Sector Treasury Services, part of the Capita Group, to develop the Local Lend a Hand product. The scheme enables borrowers to buy their first home with a deposit less than the 25% required by most mortgage lenders. The fixed rate mortgage products that will be available during this scheme will also be at a lower rate of interest than would normally be available for this level of deposit.