Lloyds Banking Group has committed £5bn towards helping first-time buyers get on the housing ladder by the end of the year.
In terms of gross lending, Lloyds advanced £12.3bn in the first half of 2012. Lloyds lent to 25,000 first time buyers in the first half of 2012 and is targeting a total in excess of 50,000 before the end of the year.
Lloyds Banking Group mortgage director Stephen Noakes says: “This commitment is not about paying lip service. It shows that we are providing genuine solutions for people buying their first home. It is important that we dispel some of the myths about first time buyer mortgages. People can buy a home with a 10 per cent deposit, or even 5 per cent through the NewBuy scheme.”
If Lloyds meets its target of 50,000, it will account for one in four first time buyers, making it the largest lending in this market.
Halifax provides more than 25 per cent of funding for the government’s NewBuy scheme which allows loans to be secured at 90-95 per cent of the property’s value, meaning the purchaser requires a 5-10 per cent deposit.
Halifax and Lloyds TSB last week reduced their product rates, including NewBuy and new build, by up to 0.20 per cent.