Lloyds TSB extends Lend a Hand

The innovative product, previously only available to first time buyers, will be good news to homeowners looking to move home, but do not have the large deposit required for many of the products in today's market.
First time sellers, especially those who bought their first home at the height of the market, are likely to benefit from the product as the market conditions have not allowed for any increase in their equity. It will also provide an option to those looking to move to a bigger home as they look to start a family, but have been held back because of a small deposit.
With Lend a Hand, borrowers can take out a mortgage with a deposit of just five per cent, but can access a rate that is the equivalent of products available for borrowers with a significantly bigger down-payment. This is because their funds are backed up with the savings of helper, such as a parent, grandparent or other family member.
No other major lender offers deals for new customers moving house unless they have a deposit of at least 10 per cent. Product pricing can also be expensive at this level. The lowest rate on the market for those with a 10 per cent deposit is 5.99 per cent. With Lend a Hand, borrowers can get rates from 4.79 per cent with a £895 fee, even if they have a five per cent deposit. At the same time, their helper benefits from a competitive savings rate (currently 3.75 per cent), as a legal charge is taken over the savings to offset the risk.
Stephen Noakes, commercial director of mortgages explained: "It's not always easy to pull together a big deposit in today's market, but this product can make the move to a new home not only more achievable, but more affordable.
"The Lend a Hand mortgage has been a very successful way for people to take their first steps in the housing market. It's great news that it can now support those that are looking to move up the ladder too.
"The product retains all of the features that make it so unique – borrowers can move with just a five per cent deposit but without the high price tag that it would normally bring. At the same time, their family can provide their support and benefit from a competitive savings rate."