Buy a home with 5% deposit from Lloyds TSB, Love Money article.

**Gav** · 19th July 2010, 09:33 AM

just noticed this over on lovemoney: Buy a home with a 5% deposit!

It's not the best of setups and you're better borrowing from the people that have the savings needed for the account. I'm not a fan of Lloyds TSB, about 6 months before the global financial crash I went in with 45% deposit for my first home and they said not a chance! They then came back to me and offered a 5 year fixed term at 9.9% which was roughly 3% higher than most other mortgages. Even then they wouldn't offer the entire amount of cash needed for the house. I had to borrow from family as we'd already put an offer in on a house thinking no bank would refuse us. I'd banked with them for 5 years and my wife for over 20!

During the whole process they managed to loose £25,000 of ours, accidently put in someone elses account and they couldn't get it back. Thankfuly 4 months later they sorted that, but wouldn't pay us interest or even offer an apology, if I hadn't kept very good details stating that the account numbers were correct that it was meant to be deposited in, we would never have got it back. Now with Santander and Nationwide, SO much better!

I gather Lloyds TSB knew how bad the financial crash was going to be 6 months before it happened as they wouldn't even loan to such a sure bet. Really terrible behaviour by Lloyds TSB.

**hippobank** · 19th July 2010, 03:07 PM

I agree "it's not the best of setups" it's awful, absolutely awful! One user on the Lovemoney website said "Truly this is a product for people who trust banks more than their children!" I agree with that. Your much better off with First Direct:

Life Tracker 65% LTV £99 Tracks the Bank of England Base Rate plus 1.79% for the term of the mortgage 2.3% APR

That would have been good in your situation Gav.

**newboilerguy** · 8th August 2011, 09:58 AM

My sister in law actually got a deal where the developer matched her 5% deposit which I thought was a pretty good incentive for first time buyers providing you negotiate a good price in the first price. This was on a new build so you always have to be careful on price to value.

**Gav** · 9th August 2011, 09:04 AM

yeah a few friends that were having trouble selling their flat managed to get a deal like this too, they can work, but you have to make sure it's exactly what you're after!