MichaelTP
9.8K posts
Lloyds has launched a new first-time buyer mortgage needing just a £5,000 deposit 🏡 Key details: - Up to 98% mortgage (borrow up to £295k) - Max property price: £300k - 5-year fixed rate at 5.89% - No product fees - Max borrowing: 4.5x salary - Available to employed + self-employed But there’s a catch: - No gifts (“Bank of Mum & Dad” banned) - No new builds - No shared ownership - Strict affordability + credit checks apply Example: £300k house = £5k deposit + £295k mortgage. On the example of a £300,000 home with a £5,000 deposit: Mortgage = £295,000 Rate = 5.89% fixed for 5 years Assuming a 40-year term (the max allowed) Estimated monthly repayment = ~£1,600/month. If the mortgage term was shorter: 35 years = ~£1,740/month 30 years = ~£1,920/month That’s before bills, insurance, council tax and maintenance costs. Lloyds says it’s aimed at renters who can afford monthly payments but can’t save huge deposits. Basically, the majority of Millennials and GenZ!
