Lloyds to launch shared equity and ownership deals
The range, available from 23 October, consists of shared equity and shared ownership mortgages.
The two-year fixed rate mortgages start from 3.79% and products are available on all loans up to 90% loan to value.
Stephen Noakes, director of mortgages at Lloyds TSB, said: “We are committed to making the housing market more accessible to first-time buyers.
“Shared equity and shared ownership schemes offer a secure and more affordable alternative to buying a home outright, and the schemes are an important part of the market for first-time buyers and homemovers.
“By adding these mortgages to our range we are hoping that we will be able to help more people realise their dream of home ownership.”
Ben Thompson, managing director Legal & General Mortgage Club, said: “This move by Lloyds TSB to help boost the number of first time buyers able to get onto the property ladder is definitely a positive one.
“Shared equity and shared ownership schemes allow a person to purchase and own a share of their home even if they cannot afford a mortgage on the whole property. With current house prices and low market confidence, this may seem very attractive to lots of FTBs.
“The two-year fixed rate will also be available for those looking to remortgage, which may prove to be a prudent move by the bank in the coming months.
“What the mortgage market really needs is increased competition, especially when it comes to products available to borrowers with smaller deposits. The fact that the new Lloyds mortgages will cater for this market, offering products on loans up to 90% LTV is definitely a step in the right direction. If we are to see a significant impact on the wider economy, however, we will need to see other high street banks and large institutions following in their footsteps and moving up the risk curve.”
In July this year Lloyds Banking Group confirmed its plans to lend £5bn to first-time homeowners by the end of 2012. The pledge will help over 50,000 people buy their first home by the end of 2012.
Lloyds TSB is also cutting rates on a number of mortgages from 23 October, including rates on two-year fixed and tracker mortgages for homemovers and first-time buyers up to 75% LTV and selected two and three-year fixed and two-year tracker for remortgages.