New loan product for borrowers who want to move to another property

A large percentage of people who have made a house acquisition with the help of a home owner loan or mortgage with a high LTV within the period of the past couple of years and want to move now are told that they can’t move because they don’t have enough equity in their property. This grim situation has been caused by falls in house prices.

In their attempt to help customers resolve the problem in question, Lloyds Bank and the Halifax have introduced a special financial product called Equity Support Mortgage loan.  This loan is designed to enable borrowers to move house, even though they have insufficient equity in their home.

According to the statistical data, about 19% of home owners took out their home owner loan when the prices were the highest and about one in twenty borrowers are in a negative equity at the moment.

The new product launched by Lloyds will let borrowers take out up to 120% LTV on a new loan, which would make it possible for borrowers to move property.
 


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