The two-year fixed rate mortgages have rates starting from 3.79% and are available up to 90% Loan to Value (LTV).

Stephen Noakes, director of mortgages, at Lloyds TSB, said:

“We are committed to making the housing market more accessible to first-time buyers. Shared equity and shared ownership schemes offer a secure and more affordable alternative to buying a home outright, and the schemes are an important part of the market for first-time buyers and homemovers.

“By adding these mortgages to our range we are hoping that we will be able to help more people realise their dream of home ownership.”

Ben Thompson, managing director of the Legal & General Mortgage Club, added:

“This move by Lloyds TSB to help boost the number of first-time buyers able to get onto the property ladder is definitely a positive one.

“What the mortgage market really needs is increased competition, especially when it comes to products available to borrowers with smaller deposits. The fact that the new Lloyds mortgages will cater for this market, offering products on loans up to 90% LTV is definitely a step in the right direction. If we are to see a significant impact on the wider economy, however, we will need to see other high street banks and large institutions following in their footsteps and moving up the risk curve.”