By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards


It's back - the 100% mortgage for first time buyers

The 100 per cent mortgage for first time buyers, which many people thought had disappeared for good, is now back in the form of a new product from Lloyds Bank.

It's offering customers the package so long as the borrower’s parents are willing to open a linked savings account and deposit the equivalent of 10 per cent of the purchase price.

The bank dresses up the 100 per cent product as “a new way for families to help their children achieve their top life goal, while rewarding family members with a market-leading savings rate.”


The product, called Lend A Hand, is a three year fixed mortgage at 2.99 per cent while the parental savings will enjoy a three year fixed rate of 2.5 per cent.

Vim Maru of Lloyds Banking Group says: “We are committed to lending £30 billion to first-time buyers by 2020 as part of our pledge to help people and communities across Britain prosper … this market-leading product is helping to address the biggest challenge first time buyers face getting on to the property ladder.

“Although times have changed, children still have a similar ambition to their parents – to own their own home. Lend a Hand helps parents to invest in their children’s future and get the best return on their cash.”

Lloyds’ research shows that 50 per cent of Millennials say that lack of a deposit was the biggest obstacle to buying their first home, while 26 per cent say they have other priorities just now and another 24 per cent say they can’t afford to buy in their desired location.

"Those borrowers with little or no savings for a deposit will no doubt be struggling and may wonder if they will ever become a homeowner without support. Parents, too, may well want to help their children get their first home, but are hesitant to relinquish their hard-earned savings, so a guaranteed fixed return for three years at a fantastic rate will no doubt be enticing” explains Rachel Springall, finance expert at Moneyfacts. 

Poll: What do you think of 100% mortgage for first time buyers?


  • Harley Welch

    No quite a 100% mortgage then or am i misunderstanding the concept. The money is provided by a member of the family so really the bank is not lending 100% without a catch. Bank of MUM and DAD must have a GUARANTEE amount in the saving account for a period to cover that deposit %. When the real 100% arrives that will be a good sign as long and we lend correctly and we don't go back to 2008.


Please login to comment

MovePal MovePal MovePal
sign up