Lloyds TSB and Halifax are going head-to-head with the launch of seven-year fixed rate mortgages for first-time buyers.

Looking at the two products, there is very little to choose between them.

Both offer a rate of 5.89 per cent, have no product fee and are available to borrowers with a deposit of at least ten per cent.

The Lloyds TSB product offers £500 cashback to first-time buyers, whereas Halifax offers the same cashback to all borrowers who take up the product.

Lloyds says that it will lend £5 billion to first-time buyers by the end of 2012 and that the new product follows its support for the Funding for Lending (FLS).

Stephen Noakes, Director of Mortgages, Lloyds TSB, said: "There is no question that first-time buyers have to overcome major hurdles to join the property ladder; but this product has been designed specifically with them in mind.”

Halifax also say that there new product is part of their participation in the government’s FLS scheme.

Ian Wilson, Head of Sales at Halifax Intermediaries, said: "We are providing brokers with a very competitive product enabling them to offer their first time buyer clients; this 7-year product has been designed specifically with them in mind.”

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