First-time buyers have been handed a lifeline after Britain’s biggest mortgage lender announced it would resume offering mortgages for buyers with only a 10% deposit.
Lloyds Banking Group has said it will accept applications from customers from December 8. However, it has introduced heavy restrictions to limit the number of customers who can apply, which will be available through both its Halifax and Lloyds Bank brands.
Aaron Strutt of Trinity Financial told The Telegraph while it was good to see 10% deposit mortgages back on the market, younger borrowers were still getting a raw deal as interest rate were much higher than those with a 15% deposit.
"Many borrowers are frustrated that the deals are so much more expensive than they were at the start of the year. If you can raise a 15% deposit, you will get access to significantly cheaper rates through many of the larger lenders.”