Mortgage lenders expand 10% deposit ranges

Lloyds Bank, Halifax and Bank of Scotland have introduced new home mover house purchase mortgages for borrowers with deposits as low as 10%.

The deals will broaden out the banks’ low deposit offering beyond only first-time buyers, to existing home owners looking to move.

New build 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 but home movers can only borrow up to 4.49 times of their income as part of affordability tests.

The banks are all part of the same group and the deals are also available through Halifax Intermediaries. The criteria will help the banks manage service levels.

The group previously returned to 10% deposit lending for first-time buyers in December.

The choice of low-deposit deals generally on the market evaporated at the start of the coronavirus crisis, but some lenders have been making a cautious return in recent months.

Concerns about possible house price falls and rising unemployment are among the factors which have added to lender caution.