Bank of Scotland introduces new mortgage deal for borrowers with low deposits
Lloyds Banking Group, which owns Halifax and Bank of Scotland, has introduced new home-mover house purchase mortgages for borrowers with deposits as low as 10%.
The deals will expand the banks’ low deposit offering beyond only first-time buyers, to existing homeowners looking to move.
Newbuild properties are excluded from the deals and they cannot be used alongside other house purchase schemes.
Loans of up to £500,000 can be applied for, however, movers can only borrow up to 4.49 times of their income as part of affordability tests.
The deals are also available through Halifax Intermediaries, The Herald reports.
In December, Scottish Financial News reported that the bank reintroduced its 10% mortgages after the COVID-19 crisis saw banks and building societies cut such deals from their offerings.
The choice of low-deposit deals generally on the market disappeared at the start of the crisis, but some lenders have been making a cautious return in recent months.
Possible house price falls and rising unemployment are among the factors which have added to lender caution.