(Image: Getty Images )<\/cite><\/p>\n<\/figcaption><\/div>\n<\/button><\/div>\n
The mortgage product will have an interest rate of 5.89 per cent when it officially launches on May 18. The deal is available to both employed and self-employed applicants, who will need to pass “strict” affordability and credit checks, according to the bank.<\/p>\n
The borrowing term is up to 40 years and the product will be offered UK-wide. Borrowers making purchases involving shared ownership schemes, new build homes and with gifted deposits are not eligible.<\/p>\n
Amanda Bryden, head of mortgages at Lloyds, said: “We hear time and again from those who are doing everything right – paying their bills, managing their money well, putting aside what they can – but still feel locked out of home ownership because saving a big enough deposit seems impossible.<\/p>\n
“The reality is that many would-be buyers are already paying as much in rent as they would on a mortgage. By cutting the upfront cost to \u00a35,000 we’re breaking down a major barrier to getting on the property ladder. This gives people a better chance to own their first home and start building a more secure future.”<\/p>\n
Lloyds revealed that the average first-time buyer is now aged 32 – two years older than a decade ago – as the increasing cost of rents and rises in living costs have made it harder to save. A number of other lenders also provide low or no-deposit mortgage products, offering first-time buyers a crucial foothold on the property ladder.<\/p>\n
In February, Santander UK introduced a mortgage requiring a minimum deposit of just \u00a310,000. Skipton Building Society similarly offers mortgage deals with low to no deposit requirements.<\/p>\n
Andrew Montlake, chief executive of Coreco mortgage advisers said: “This is a genuine shot in the arm for aspiring home buyers, especially those who don’t have the luxury of the bank of mum and dad behind them.<\/p>\n
“For many would-be buyers, the issue is not whether they can afford the monthly mortgage payments or whether they have a good credit record. The real mountain to climb is saving a big enough deposit while rents, bills and everyday living costs continue to take a hefty bite out of their income.<\/p>\n
“There are already some decent low-deposit and even 100 per cent mortgage options out there, but when one of the UK’s biggest lenders puts its weight behind this part of the market, it matters. It sends a message of confidence and gives more borrowers a realistic route onto the housing ladder.”<\/p>\n
David Hollingworth, associate director at LandC Mortgages said: “This new launch is significant as it marks another major high street lender developing solutions for those with a small deposit. We’ve seen a growing range of lenders in this space, designing products that could significantly speed up the journey to home ownership.<\/p>\n
“There are now several deals where it could be possible to borrow more than 98 per cent of the purchase price or even require no deposit at all. This will help those that have good affordability but are being held back by the need for the traditional deposit of 5 per cent or more.”<\/p>\n
Speaking more broadly, Mr Hollingworth explained that smaller deposits can carry a heightened risk of purchasers slipping into negative equity.<\/p>\n
This situation can arise if property prices decline and the outstanding debt exceeds the home’s current value. However, he added: “That only becomes a problem where the property needs to be sold, which would crystallise a loss.”<\/p>\n<\/div>\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Lloyds has issued details and said customers will need to pass strict checks Linda Howard Money and Consumer Writer, Rory Poulter and Vicky Shaw 10:03, 14 May 2026Updated 10:04, 14…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_lmt_disableupdate":"","_lmt_disable":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[25,29],"tags":[],"class_list":["post-157918","post","type-post","status-publish","format-standard","hentry","category-housing-news","category-recentpost"],"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"publishpress_future_action":{"enabled":false,"date":"2026-12-13 17:26:59","action":"change-status","newStatus":"trash","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/vale50plus.org\/clone\/wp-json\/wp\/v2\/posts\/157918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vale50plus.org\/clone\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vale50plus.org\/clone\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vale50plus.org\/clone\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/vale50plus.org\/clone\/wp-json\/wp\/v2\/comments?post=157918"}],"version-history":[{"count":0,"href":"https:\/\/vale50plus.org\/clone\/wp-json\/wp\/v2\/posts\/157918\/revisions"}],"wp:attachment":[{"href":"https:\/\/vale50plus.org\/clone\/wp-json\/wp\/v2\/media?parent=157918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vale50plus.org\/clone\/wp-json\/wp\/v2\/categories?post=157918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vale50plus.org\/clone\/wp-json\/wp\/v2\/tags?post=157918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}