Britain's biggest mortgage lender has announced the largest ever commitment to first time buyers, pledging to lend £5bn to first time home buyers.
Online PR News – 04-August-2012 –Lloyds Banking Group has unveiled the UK's largest commitment to first time
buyer lending by confirming it will lend £5bn to first time homeowners by the end
In the first six months of the year, the Group has helped over 25,000 people take
their first steps onto the property ladder.
The pledge will help over 50,000 people buy their first home by the end of 2012.
This figure represents:
• One in four first time buyers, making it the largest lender in this market
• 140 new homeowners every day
The first time buyer commitments are delivered through one of the most comprehensive product propositions in the UK mortgage market:
• One in three mortgages on affordable housing schemes are provided by Halifax, including shared ownership and shared equity
• A third of all lending on UK new build properties funded by the Group
• Halifax provides more than 25% of funding for the NewBuy scheme, working alongside 21 housebuilders, more than any other lender
• A maximum loan to value ratio of 90% on the Halifax and Lloyds TSB
core product ranges, including on selected new build properties with Halifax
• Innovative product design including stamp duty redemption for first time buyers, and refund of valuation fee on failed purchases through Halifax
• Lending to borrowers with a 5% deposit through the Lloyds TSB Lend a Hand and Local Lend a Hand schemes
Stephen Noakes, Mortgage Director at Lloyds Banking Group, commented:
"This commitment is not about paying lip service. It shows that we're providing genuine solutions for people buying their first home. It's important that we dispel some of the myths about first time buyer mortgages. People can buy a home with a 10% deposit, or even 5% through the NewBuy scheme."
"Getting things right at the bottom of the ladder has an important knock on effect
throughout the chain. With our unrivalled commitment to affordable housing, new build through Halifax, and innovative products such as Lloyds TSB's Lend a Hand, we're not targeting our support at a select few, but making home ownership a reality for a whole generation of buyers."
Halifax and Lloyds TSB last week refreshed their product ranges, reducing product rates including NewBuy and new build by up to 0.20%. From Friday, first time buyers with a 10% deposit can also benefit from £1,000 cashback in Halifax branches.
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at April 2012, HM Treasury held a 41% shareholding through UK Financial Investments Limited. The Group headquarters is located at 25 Gresham Street in the City of London, with its registered office on The Mound in Edinburgh. Lloyds Banking Group's activities are organised into four business divisions: Retail Banking (including Mortgages), Wholesale, Life, Pensions & Insurance, and Wealth & International. Lloyds' extensive operations span the globe including the US, Europe, Middle East and Asia.