Lloyds TSB 7-year fixed rate mortgage for first-time buyers

Lloyds TSB is launching a new 7-year fixed rate mortgage for first-time buyers, offering these customers the opportunity to fix their borrowing costs over a longer term.

The 7-year fixed rate mortgage, available in all Lloyds TSB branches from Friday 14th September, is offered at a rate of 5.89%, has no product fee, and is available with an LTV of 85% - 90%. First-time buyers will also be eligible for £500 cashback on completion of the mortgage, which can then go towards the cost of moving.

Stephen Noakes, Director of Mortgages, Lloyds TSB, said: "There is no question that first-time buyers have to overcome major hurdles to join the property ladder; but this product has been designed specifically with them in mind. With a 10% deposit, the certainty of monthly payments over a long period, the removal of the product fee and £500 cashback at a time when they need it most; this offers a real solution for aspiring homeowners."

In July this year, Lloyds Banking Group unveiled the UK's largest commitment to first-time buyer lending by confirming it will lend £5bn to first-time homeowners by the end of 2012. The pledge will help over 50,000 people buy their first home by the end of 2012.

This latest offer follows the Group's participation in the Government's Funding for Lending scheme and is part of its ongoing commitment to the first-time buyer market. With the support of this scheme the Group aims to lend £500 million to first-time buyers at more competitive rates.