Britain’s biggest lender has launched a 100 per cent mortgage for first-time buyers — as long as the Bank of Mum and Dad is ready to help out.
Lloyds has unveiled a “Lend a Hand” loan that enables buyers to purchase a home without a deposit, but only if a member of their family guarantees it by putting money into a Lloyds account.
Parents wanting to help their child on to the housing ladder do not have to give them any money. Instead, under the scheme, the family member puts 10% of the property’s value in a Lloyds account for three years, earning an interest rate of 2.5%. The buyer gets a deposit-free mortgage at a rate of 2.99% — the lowest rate for this type of loan.
