Hastings Borough Council is the latest local authority to team up with bank Lloyds TSB to help first-time buyers purchase a home with just a 5% deposit. The initiative, announced in March last year, was initially being piloted by four other local authorities. Hastings said the The 'Local Lend a Hand' product will be available in local branches of Lloyds TSB from 10 January 2012. The normal deposit required by most lenders is around 10%. Under the deal - and subject to Lloyds TSB's usual lending criteria - borrowers are able to select a property within the local area, up to a maximum loan size of £150,000. First time buyers will put down 5% of the property price, and the council will provide a cash backed indemnity of up to 20% as additional security. The local authority then earns interest on this amount. Read more on the Hastings Borough Council website.
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