Lending giant Lloyds is launching a new low-deposit mortgage that could help first-time buyers get on the property ladder with a deposit as low as £5,000.
The new product, which is also available through Halifax and via brokers, is aimed primarily at renters who are already coping with significant regular housing costs, but who may not have financial support from the “bank of mum and dad”.
Lloyds said the gap between typical rents and mortgage payments has narrowed, meaning many renters are already paying as much each month as they would on a mortgage.
The bank said that by lowering the upfront cost to get on the property ladder, the new mortgage could reduce the time it takes to save a deposit by years for some buyers.
