propertytalk Live! - Lloyds TSB acts on call for first-time buyer innovation

propertytalk Live! - Lloyds TSB acts on call for first-time buyer innovation

Lloyds TSB has introduced Local Lend a Hand - a new concept designed to help first time buyers purchase a home with a deposit of just 5%.

Raising a deposit is a crucial challenge for many first time buyers looking to take their first steps onto the property ladder, and is highlighted by many as the key hurdle to buying their first home.

Responding to calls for further innovation in the first time buyer market, Lloyds TSB has worked with Sector Treasury Services, part of the Capita Group, to develop its unique Lend a Hand product to address this problem. Local Lend a Hand will enable borrowers to buy their first home with a deposit less than the 10% required by most mortgage lenders.

The Lend a Hand product range already includes products that allow first time buyers and homemovers with a smaller deposit to buy a home with the support of a 'helper' - usually parents or other family and friends.

With the new initiative, Local Lend a Hand, Lloyds TSB is inviting local authorities to take the role of 'helper'. Lloyds TSB is currently working with Sector Treasury Services to pilot the scheme with local authorities including Blackpool, Warrington, Newcastle under Lyme and East Lothian, with a view to fully establish the scheme across the UK throughout 2011.