Minimum hours contractor!

Britain's biggest lender is to offer 100% mortgages to first-time buyers in a return to lending last seen before the financial crash - but only if the buyer has family that can stand behind the loan. Under the new Lloyds Bank "Lend A Hand" deal, a first-time buyer will be able to borrow up to £500,000 for a new home, without putting down a penny of deposit. - Guardian

That's great news for kids if it happens.

And for the 30 somethings & 40 somethings who are still living at home or in rented accommodation because they are struggling to raise the deposit.

I can hear my youngest beating a path to the front door....

The sale of a 100% loan-to-value mortgage may appear to be a return to the unrestrained, and much criticised, lending seen before the financial crisis.

However, a new mortgage launched by Lloyds, aimed at first-time buyers, actually requires a 10% deposit – but instead the money is put into a three-year fixed savings account by a family member.

Experts say that the deal is competitively priced and may grab the attention of young potential buyers who have the help of the Bank of Mum and Dad.

But commentators also point out it is not the only such offer on the market, and there is always a danger with a high loan-to-value mortgage – if house prices fall then the homeowner risks swiftly falling into negatively equity.

Question is would you be happy to guarantee a 500K loan for your son or daughter?

I don't believe it is a guarantee or collateral. It appears that the family member locks up 10% of the loan value in a 3 year 2.99% fixed rate deposit. I have read nothing relating to forfeitures or guarantees. Locking up 50 grand at almost 3% may be safer than many shares at the minute. :-)

Its 2.5% not 2.99% - link.

Whatever. Para 7 says 2.5% while 11 says 2.99%. The Guardian has always been rather vague, that why it's Fred favourite go to.

Try the Independent then.

I have an ad blocker so can't read the Independent. No loss as far as I am concerned but I'll take your word for it Skinny. My point was more about the deal not being a guarantee rather than the specific interest rate offered.

Those numbers don’t look bad at all. Probably tank today as a result. :-).

LONDON (Reuters) - Britain’s biggest mortgage lender Lloyds Banking Group posted weaker-than-expected growth in annual profits on Wednesday but boosted shareholders with a increased dividend and a 1.75 billion pound share buyback.

The bank posted net profits of 4.4 billion pounds for 2018, below expectations of 4.6 billion pounds, according to a company-provided average of analyst forecasts. The figure was up 24 percent from 3.5 billion pounds in 2017.

The bellwether FTSE 100 firm also unveiled an annual dividend of 3.21 pence, taking total payouts for investors for the year to around 4 billion pounds.