FIRST-TIME buyers in the Isle of Man are being offered a new mortgage product by Lloyds TSB to help them get onto the Manx property ladder.
The bank has today (Thursday) launched the “Lend a Hand Mortgage” at local branches of Lloyds TSB, “We hope it will be welcome news to first-time buyers who had previously struggled to find suitable mortgage deals,” they said.
The “Lend a Hand” mortgage works by giving up to two members of the buyers’ families (or friends) the opportunity to help with buying a property. The helpers simply open a “Lend a Hand Savings Account” with Lloyds TSB and put a lump sum into the account, typically 20% of the value of the property.
The account is then held as additional security for the mortgage by way of a security agreement. The initial deposit or equity and the helper’s contribution must equal 25% of property’s value.
Lucy Felton, Business Development Manager, said, “This product is a great opportunity for first-time buyers who would otherwise be looking at a scarcity of current mortgage options. By allowing the buyers’ nearest and dearest to contribute means that while they would still be borrowing 95% of the property’s value, they benefit from the five year fixed rates in our 75% mortgage product range.
“This means that people who take out a “Lend a Hand” mortgage will pay a lower interest rate and a lower monthly payment. The mortgage ‘helper’ will also earn interest on their contribution and will be able to get their money back at a later date.”
The “Lend a Hand” mortgage isn’t only available for first-time buyers. Isle of Man residents who already own a home and are looking to move on can also apply, whether they are buying by themselves or with a partner.
