Lloyds lends a hand

Lloyds TSB is teaming up with local authorities to help out first time buyers.

A Local Lend a Hand scheme is currently being piloted in Blackpool and West Lothian, but will be available Britain.

Young aspiring home owners will be able to put down a 5% deposit if their local authority stumps up another 20% in a Lloyds savings account as security.

While the buyer will own the property, the local authority will earn interest on its money.

It’s the same idea as Lloyds existing Lend a Hand scheme, except this time its local authorities and not parents putting down the security.

Lloyds has not confirmed what the rates on it will be, though it’s likely to be a three year-fixed at 5.09% with a fee of £895.

'The local authority will have a vetting process on borrowers and the properties available. But it's a good option if your parents don't have a spare £20,000 to lend,' David Hollingworth of broker London & Country told Thisismoney.

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