They expect the pledge to help around 60,000 people buy their first home by the end of 2013. The first time buyer commitment will be delivered through one of the most comprehensive product propositions in the UK mortgage market:
- One in three mortgages on affordable housing schemes are provided by Halifax, including shared ownership and shared equity
- A third of all lending on UK new build properties is funded by the Group
- Halifax provides more than 40% of funding for the NewBuy scheme, working alongside 42 housebuilders, more than any other lender
- Bank of Scotland has launched a range of products for customers on the MI New Homes scheme
- A maximum loan to value ratio of 90% on the Halifax and Lloyds TSB core product ranges, including on selected new build properties with Halifax
- Lending to borrowers with a 5% deposit through the Lloyds TSB Lend a Hand and Local Lend a Hand schemes, with over 30 participating local authorities.
Lloyds Banking Group is committed to supporting first time buyers and lending to small and medium sized business enterprises. The Group was the first bank to access the Government's Funding for Lending scheme through a £1 billion drawing in September 2012 and to date has drawn a total of £3 billion.
Stephen Noakes, Mortgage Director at Lloyds Banking Group, commented:
"Our range of products is continuing to make home ownership a reality for so many first time buyers. Through our unrivalled commitment to affordable housing and new build schemes through Halifax, and innovative products such as Lloyds TSB's Lend a Hand, we're offering real solutions for those with smaller deposits.
"The recovery in the housing market rests on growth in the wider economy. Whilst the property market is likely to continue to be challenging, we remain committed to getting things right at the start of the chain, creating liquidity in the housing market and helping more people get on to the property ladder in 2013."
In 2012 Lloyds Banking Group committed to lending £5 billion to support 50,000 first time buyers. At September 2012, the Group had helped 40,000 customers, the equivalent of one in four first time buyers, to purchase their first home.
