LloydÂ´s Bank sets aside billions of pounds to help first-time buyers get on the property ladder.
The banking group, whose brands include Halifax and Bank of Scotland, expects the Â£6.5bn pledge to assist around 60,000 first-timers to buy their first home by the end of 2013.
Lloyds promised to lend Â£5bn to support 50,000 first time buyers back in 2012, and by September they had successfully helped up to 40,000 people.
â€œIt is important that a lender of Lloydâ€™s size is making such a commitment to the first time buyer market, as this will help drive competition.â€ David Hollingworth, mortgage broker London and Country.
The New Buy scheme launched by the government in 2012 received 40% of their funding from Halifax, which is available to both first time buyers and those moving home who can only manage a small deposit. It also claims to account for one in three mortgages on affordable housing schemes.
â€œWhile 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 onto the property ladder in 2013.â€ Stephen Noakes, Mortgage Advisor for Lloyds Banking Group.
Recently, Barclays has too introduced a new deal called â€˜Family Springboardâ€™, aiming on giving new buyers access to an affordable fixed rate mortgage with a deposit of 5%, providing their family opens a savings account linked to the loan into which they put 10% of the purchase price for three years.
By Emma Cinis