moneysupermarket.com: Lloyds TSB First Time Buyer mortgage

Commenting on the new Lloyds TSB First Time Buyer mortgage, Clare Francis, site editor at moneysupermarket.com, said: "This is a great product to help first time buyers get on the housing ladder.

"Not only is the rate competitive, but it's really good to see some new activity in the high Loan To Value (LTV) market. It is another indication that funding pressures on lenders may, at last, be starting to ease.

"We need products like this to help kick start the housing market, as the absence of first time buyers has been one of the main factors blamed for the severity of the downturn. Obviously not all first time buyers who need a 95 per cent loan will be able to take up the offer, as it is dependent on parents having 20 per cent of the property's value in savings to set against the mortgage. However, it should still prove popular with many parents willing to help their children in this way.

"We now need other lenders to follow Lloyds' lead in order to bring an end to the impasse that has been strangling the housing market."