Lloyds Bank has launched a 100 per cent loan-to-value mortgage linked to a savings account to help first-time buyers get a foot on the property ladder.
The Lend a Hand mortgage was launched following research by the bank that found buying a home was among the top life goals for millennials, but half of those surveyed said the deposit was the biggest obstacle.
Lloyd’s latest launch removes the need for a deposit from the first-time buyer and instead up to 10 per cent of the loan is provided by the savings of a family member.
The mortgage is a three-year fixed with a rate starting at 2.99 per cent. The maximum term for the product is 30 years, and Lloyds will only lend up to a maximum of £50,000.
Alongside the mortgage is a savings account offering 2.5 per cent, fixed for three-years.