Currently, a new mortgage product has hit the market that will help people purchase property with no deposit. This mortgage product is helpful because it saves people from the burden of having to save for their first home. Like traditional mortgages, they lend money to people which they promise to pay back in order for them to use this money to pay for a home. This product eliminates saving for a home which takes the typical saver about eight years to do so. The mortgage product is launched by Lloyds Bank. The bank will loan hundred percent of the deposit for a new home on the condition that a relative of the borrower opens a fixed-rate savings account with the bank and deposits ten percent of the amount of the mortgage into the account. The money in the account cannot be removed by the relative until after three years, and the rate for it is 2.5 percent. This product has been touted to be an innovative mortgage product.
- It is reported by the author that a new mortgage product has hit the market and it helps first time buyers to purchase property without a deposit.
- For people to get a foot on the property ladder they often rely on mortgages which lend them a portion of the price of the home.
- Lloyds Bank is having a mortgage that pays hundred percent of the deposit for the home provided a family member opens a savings account with ten percent deposit.
“According to recent reports it takes the typical first time buyer eight years to save up a deposit for a home.”