{"id":120503,"date":"2026-05-15T08:00:00","date_gmt":"2026-05-15T07:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=120503"},"modified":"2026-05-14T22:08:31","modified_gmt":"2026-05-14T21:08:31","slug":"lloyds-launches-98-mortgage-deal","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/lloyds-launches-98-mortgage-deal\/","title":{"rendered":"Lloyds Launches 98% Mortgage Deal for Buyers Facing Rising Living Costs"},"content":{"rendered":"\n

Lloyds Banking Group is launching a new low-deposit mortgage aimed at helping first-time buyers enter the housing market with just \u00a35,000 upfron<\/strong>t. The product, available from May 18 through Lloyds, Halifax and mortgage brokers, applies to homes worth up to \u00a3300,000.<\/p>\n\n\n\n

The lender said the initiative is designed for renters who can manage monthly housing costs but struggle to save for a traditional deposit. According to Lloyds, many renters are already paying amounts similar to monthly mortgage repayments<\/strong>, while rising living costs have made saving increasingly difficult.<\/p>\n\n\n\n

The mortgage arrives as first-time buyers in the UK continue to face affordability pressures. Lloyds revealed that the average first-time buyer is now aged 32, which is two years older than a decade ago. The bank also said nearly two-thirds of prospective buyers believe they need to save more than \u00a320,000 before purchasing a home.<\/p>\n\n\n\n

The new deal carries a fixed interest rate of 5.89%<\/strong> over five years and allows borrowers to access loans worth up to four-and-a-half times their salary. Applicants must pass affordability and credit checks, and the mortgage is open to both employed and self-employed buyers.<\/p>\n\n\n\n

Lloyds Targets Renters Struggling to Save for Deposits<\/strong><\/h2>\n\n\n\n

According to Lloyds, the mortgage <\/a>has been developed primarily for people without financial support from family members. The bank said saving for a deposit <\/strong>remains the biggest obstacle for many aspiring homeowners, even when they are able to meet monthly rental payments consistently.<\/p>\n\n\n\n

The mortgage requires a minimum deposit of \u00a35,000 and offers a maximum loan-to-value ratio of just over 98%. Borrowers can spread repayments over terms of up to 40 years<\/strong>, while the product itself comes without arrangement fees.<\/p>\n\n\n\n

Amanda Bryden<\/a>, head of mortgages at Lloyds, said many prospective buyers are \u201cdoing everything right\u201d financially but still remain locked out of home ownership because of deposit requirements.<\/p>\n\n\n\n

\u201cThe reality is that many would-be buyers are already paying as much in rent as they would on a mortgage<\/em>,\u201d Bryden said, according to Lloyds. \u201cBy cutting the upfront cost to \u00a35,000 we\u2019re breaking down a major barrier to getting on the property ladder<\/em>.\u201d<\/p>\n\n\n\n

The lender also confirmed several restrictions attached to the product. Buyers using shared ownership schemes, purchasing new-build homes or relying on gifted deposits will not qualify for the mortgage.<\/p>\n\n\n\n

According to figures published by Lloyds, Manchester currently has an average first-time buyer property price of \u00a3236,000. The bank estimated that a buyer purchasing such a property with a \u00a35,000 deposit and a 35-year term would face monthly repayments of around \u00a31,300, compared with average private rents in the city of \u00a31,347.<\/p>\n\n\n\n

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Lloyds is launching a \u00a35,000 deposit mortgage for first-time buyers from Monday 18 May, available through Lloyds, Halifax and Bank of Scotland.

Fixed at 5.89% for five years, no product fee, borrowing capped at 4.5x your salary. Homes must be priced \u00a3100,000 to \u00a3300,000. That\u2026 pic.twitter.com\/j8n1Zi8YcJ<\/a><\/p>— UB1UB2 West London (Southall) (@UB1UB2) May 14, 2026<\/a><\/blockquote>