Boost For First Time Buyers As Banking Group Announces Lending Target For 2013

Lloyds Pledge To First Time Buyers

Lloyds Pledge To First Time Buyers

Lloyds Banking Group has committed to lend £6.5 Billion (GBP) to First-Time Buyers by the end of 2013 which is expected to help up to 60,000 new borrowers.

In July 2012, the Group committed £5 Billion (GBP) towards helping First Time Buyers (FTB’s) by the end of the year.

Lloyds Banking Group mortgage director Stephen Noakes said “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 and Hand, we’re offering real solutions for those with smaller deposits.”

The group has drawn down £3 Billion (GBP) to date from the Government’s Funding for Lending scheme.

Earlier this month, the national media reported that Lloyds group is looking to ramp up its buy-to-let offering to account for just over 20% of its gross lending in 2013.

The uplift, along with increased activity among home movers, contributed to a 6% rise in the number of loans for residential property purchases in November, and year-on-year increases in activity are likely to continue, the CML said.

Figures from the Bank of England corroborate the statement from the CML, with figures showing the easing of strict mortgage conditions for first-time buyers, following the economic squeeze that kept many out of the UK property market since the start of the financial crisis in 2008.

However, in order for the FLS scheme to be deemed a success, the FLS has to make mortgages cheaper and more available for first-time buyers as well as safer for borrowers with larger deposits.

First-time buyer numbers were up by 24% compared with a year earlier, and increased by 8% month on month.

The evidence is growing that the Bank of England’s Funding for Lending Scheme (FLS) is beginning to make a difference in the UK residential mortgage market.

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