Mortgage News
LBG extends Help to Buy Guarantee to new build; Lloyds Bank lends to 95% LTV
Biggest UK-lending group Lloyds has begun lending on new-build properties for purchase through both the Halifax and Lloyds Bank Help to Buy Mortgage Guarantee scheme.
Lloyds Banking Group has also made a number of changes to its new-build mortgage range for both first time buyers and home movers.
The lender is willing to offer mortgages of between 90 and 95% LTV on new-build flats and houses through the scheme, where it was previously only willing to lend on houses.
Lloyds Bank will also lend up to 95% LTV on new-build, from today, up from 80% LTV previously.
The lender also extended its panel of builders to broaden customer access to lending on new build properties above 80% LTV.
From 4 September Halifax will withdraw from the NewBuy and Mi New Home schemes.
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The products on the Help to Buy Mortgage Guarantee scheme include a choice of two-year fixed rates from 5.19% with a product fee, or 5.59% without a fee.
On new build up to 80-90% LTV, the lender offers a choice of two-year fixed rates starting at 4.39% with a product fee up to 85% LTV, or 4.69% with a product fee up to 95% LTV.
Stephen Noakes, mortgage director at Lloyds Banking Group, said: “We continue to support customers with smaller deposits who are buying new-build properties and as a result the group is allowing these homes to be bought through our Halifax and Lloyds Bank Help to Buy Mortgage Guarantee Scheme products.
“We are committed to the new build market, where we provide one in four mortgages, and which will play a key role in helping us achieve our commitment to lend £10bn to 80,000 first time buyers this year.”
Andy Frankish, new homes director at Mortgage Advice Bureau, said after Lloyds pulled out of the equity loans scheme for second-time buyers four weeks ago, it called for this next step.
He added: “It’ll be interesting to see what Nationwide do next, as the lenders hasn’t been involved in government schemes to date. Equity loans remain attractive to consumers because the rates are priced very competitively.”
“The only players other than Lloyds who do Mortgage Indemnity Guarantee-based lending at 95% LTV are Aldermore and Barclays so this is a bold move, and a good one,” said Frankish.