A mortgage that enables parents to help children to buy their first home but without drawing on their own savings has been launched by Lloyds Banking Group.

The government-backed bank is offering to lend up to 95% of a property’s value for first-time buyers, provided that the buyers’ parents have a specified amount of cash in one of its accounts.

The new deal should help ease the difficulties faced by first-time buyers, many of whom have been excluded from the market as lenders have required larger deposits.

It will have a fixed rate of 4.39% for three years, considerably lower than other offers available to borrowers with small deposits.

Financial Times

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