Lender is launching a near-98% LTV product for buyers of homes up to £300,000
Lloyds Banking Group is allowing first-time buyers to purchase homes with a minimum deposit of £5,000, in a move applicable across its Lloyds, Halifax and Bank of Scotland brands from Monday,18 May.
The product is available on properties valued at up to £300,000, giving an equivalent maximum loan-to-value of 98%. The maximum loan is £295,000, with a fixed rate of 5.89%, no product fee, and a maximum term of 40 years. A free Level 1 valuation is included.
The maximum loan-to-income ratio is 4.5 times, and a high credit rating is required. Both employed and self-employed applicants are eligible, provided at least one applicant is a first-time buyer.
The product is available through intermediaries and direct channels. Shared ownership, new-build properties and gifted deposits are excluded.
"We regularly get feedback from brokers that first-time buyers find getting a deposit together one of the main barriers to them buying a home and today we are taking another step to help them get past that," said Amanda Bryden (pictured right), head of Halifax Intermediaries and Scottish Widows Bank.
"We recognise our responsibilities as a lender to ensure loans are affordable - not just now, but in the future for all our borrowers."
According to UK Finance data published in May 2025, the average first-time buyer household purchasing without deposit assistance had an income of £65,351 and bought a property worth £279,381. Based on a 5% minimum deposit requirement, that buyer would need to save approximately £14,000 before accounting for additional costs such as legal fees or furnishings.
Lloyds estimates that around 270,000 first homes valued at £300,000 or below were purchased with a mortgage in 2025.
Regional data from the latest Halifax House Price Index shows that in most areas outside Greater London and the South East, average first-time buyer house prices fall within the scheme's eligibility threshold.
| Regional average FTB house prices and 5% deposit | |||
|---|---|---|---|
| Region | Ave. FTB House Price | 5% Deposit | Reduction vs £5k deposit |
| East Midlands | £204,687 | £10,234 | £5,234 |
| Eastern England | £274,631 | £13,732 | £8,732 |
| Greater London | £464,646 | £23,232 | N/A |
| North East | £143,928 | £7,196 | £2,196 |
| North West | £201,120 | £10,056 | £5,056 |
| Northern Ireland | £195,981 | £9,799 | £4,799 |
| Scotland | £168,793 | £8,440 | £3,440 |
| South East | £302,396 | £15,120 | N/A |
| South West | £241,949 | £12,097 | £7,097 |
| Wales | £198,283 | £9,914 | £4,914 |
| West Midlands | £219,581 | £10,979 | £5,979 |
| Scheme Max. | £300,000 | £15,000 | £10,000 |
| Source: Halifax House Price Index April 2026 | |||
Lloyds noted that any property priced between £100,000 and £300,000 would carry a lower deposit requirement under this product than under a standard 95% LTV mortgage.
"With this new offer, brokers have a new option for buyers who have shown their ability to manage their finances, save for a deposit themselves, and who are taking the greater certainty of a longer-term fixed rate," Bryden said. "A lower deposit can make it easier to save for a deposit for many, or it can help free up cash for other costs, like conveyancing or setting up your new home the way you want it."
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