Lloyds trumpets help for first-time buyers

Lloyds Banking Group has helped 60,000 first time buyers (FTBs) get a foot on the property ladder this year, the lender announced today as part of its market update.

 

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It had pledged to help that number of FTBs buy their first homes by the end of 2013, but is ahead of schedule on both this and on its commitment to lend £6.5 billion to FTBs by December 31 this year.

The figures show that Lloyds only needed nine months to lend out a total of £6.7 billion to some 56,500 FTBs via its Lloyds Bank, Halifax and Bank of Scotland brands. That’s 53% more than it lent out to buyers in this category during the same period last year, demonstrating that tangible help for those getting on the property ladder is improving.

It then took just a few more weeks for the commitment to lend to 60,000 FTBs to be fulfilled, while the group claims that it is also on track to provide one in four of all new FTB mortgages in 2013.

Reasons for the group’s success in offering FTB mortgages include its participation in schemes such as Help to Buy and the availability of FTB deals such as the popular Lend a Hand from Lloyds Bank, which allows relatives and friends to help youngsters buy a first home.

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Figures from the Council of Mortgage Lenders (CML) show that overall FTB lending jumped by a third in the 12 months to August 2013, with government schemes being credited as a big factor in the rise.

Stephen Noakes, mortgage director at Lloyds Banking Group, said: “Fulfilling our first time buyer commitments within the first nine months of the year is reflective of our efforts.

“We’ve been able to help our customers with our participation in schemes such as New Buy and Help to Buy in the Halifax and Bank of Scotland brands, as well as continuing to offer great propositions such as Lloyds Bank’s Lend a Hand.”

The recently launched second phase of the Help to Buy scheme, which is designed to make more 95% mortgages available to first-time buyers and movers, should help to continue the upward trend for FTB home loans.

However, mortgage lending in general is also being driven by the fact that the housing market is now looking much stronger in some areas of the country.
This is illustrated by the fact that Lloyds Banking Group’s total new mortgage lending in the first nine months of 2013 was £25.2 billion, or 32% more than it lent out between January and September 2012.

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