Local Lend a Hand mortgage

With the help of your local authority in England or Wales, your first home could be nearer than you think.

To apply, book an appointment at your local branch.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

It can be hard to find the 10% or 15% deposit you need to buy your first home. That’s why we’ve come up with a way to help.

Local Lend a Hand is a new partnership between Lloyds Bank and local authorities across England and Wales. Your local authority provides a cash-backed indemnity as additional security for the mortgage. This extra security means we can offer you a mortgage of up to 95% of your first home’s value. So with a 5% deposit plus the money from the local authority, you could soon be moving into your new home.

A better rate on your mortgage
Although your mortgage would be 95% loan-to-value, the extra indemnity from the local authority gets you access to rates normally only given to people with bigger deposits.

What if I have more than 5% deposit?

If you can put down more than 5% yourself, your mortgage will be smaller and you’ll need less help from the local authority. Your deposit and the local authority indemnity must equal 25% of the property value.

Here's an example:

  • You’ve found a property you want to buy for £100,000.
  • You put down a £5,000 deposit, so you need a £95,000 mortgage (95%).
  • The Local Authority’s backing indemnifies an additional £20,000.
  • We arrange a £95,000 or 95% loan-to-value Local Lend a Hand mortgage for you, and with the extra security provided by the Local Authority, we could offer you a lower rate than you might otherwise get.

This example is only an illustration. The amount you borrow, and the amount of indemnity provided by the local authority, will depend on your personal circumstances.

Get a quotation for a Local Lend a Hand mortgage

The offer is only available at branches of Lloyds Bank. To get an individual quotation, book an appointment at your local branch. Using the online request form below, select 'Mortgages' and then 'Book appointment with a mortgage expert'. We'll call you back to confirm a day and time that works for you.

  • You’ll need a deposit of at least 5% of the property value.
  • If you have more than 5% as a deposit, this could reduce the size of your mortgage, and the local authority would have less to cover.
  • Local Lend a Hand mortgages are only available to first-time buyers and all mortgages must be on a repayment basis.
  • Local Lend a Hand mortgages can be on a sole or joint basis. Where you apply on a joint basis, only one person needs to be a first-time buyer to qualify.
  • With the extra security from the Local Authority Indemnity (or guarantee) we could give you a lower rate than you might otherwise get with smaller deposits.
  • This offer doesn’t apply to new build properties or buy-to-let mortgages, and can’t be used in conjunction with ‘Home Buy’, ‘Right to Buy’ and other similar schemes.
  • Providing the mortgage has been kept up to date, the indemnity (or guarantee) will no longer apply after five years. If the mortgage is three monthly payments or more in arrears at any time during the last six months of the first five years, we’ll extend the time to seven years.
  • If you default on your mortgage within five or seven years and there is a shortfall after the sale of the property, we have the right to claim against the indemnity (or guarantee) provided by the local authority.
  • If you want to repay your Local Lend a Hand mortgage early, there may be an early repayment charge which will have to be paid to Lloyds Bank.
  • If you want to move house, you can’t take the Local Lend a Hand mortgage with you. You will need to close it and pay any early repayment charges. You’ll then need to apply for a different mortgage on your new property. You’ll be subject to eligibility criteria at that time, like any other applicant.
  • Local Lend a Hand mortgages are only available in branches. For more information about our mortgages, visit your local branch or book an appointment with one of our mortgage experts

How much can I borrow?

You can generally borrow amounts starting from £25,000. You will still need a cash deposit of at least 5%.

The maximum amount you can borrow will depend on the terms set by your local authority, and by the amount they have available.

The funds are offered on a first-come first-served basis, and are limited to certain postcodes.

Further conditions may also apply. Please see our points to note below for important information about Local Lend a Hand mortgages.

Come and see us

If you’d like to talk to us face to face about Local Lend a Hand mortgages, book an appointment at your nearest branch using our request form. Select 'Mortgages' and then 'Book appointment with a mortgage expert'. We'll call you back to confirm a day and time that works for you.

Book an appointment

What you do:

  • When you have found a property you would like to buy contact your local branch who will check the postcode to establish if the property is eligible for a local lend a hand mortgage.
  • Find a property you want to buy in one of the postcodes.
  • Provide a deposit of at least 5% of the property’s value.
  • Apply for a Local Lend a Hand mortgage. If your mortgage is approved you can go ahead, buy the property, and move into your first home.
  • Make your monthly mortgage repayments to us – we’ll agree these when the mortgage is set up.

What Lloyds Bank does:

  • We offer Local Lend a Hand mortgages in partnership with participating local authorities.
  • We carefully consider your mortgage application to make sure it fits our lending criteria.
  • We check that your local authority has funds available to back the indemnity (or guarantee). Funds are limited, and are offered on a first-come, first-served basis.
  • Provided you meet our standard lending criteria, we may be able to offer you a Local Lend a Hand mortgage.

What the Local Authority does:

  • They choose to indemnify (guarantee in Scotland) mortgage lending with us in selected postcodes. They will have maximum limits on the size of mortgage they will support.
  • They provide a cash-backed indemnity (guarantee in Scotland) to us.
  • They agree that we can claim against that indemnity (guarantee in Scotland) for up to seven years from the time any mortgage is first taken out.
  
  • Why are Local Authorities prepared to help?

    Local Authorities want to help more first-time buyers onto the property ladder because it stimulates the local housing market and the local economy. They also earn interest on the deposit they place with us to back the indemnities (or guarantees).

  • Is this a shared ownership or shared equity scheme?

    No, this is not a shared ownership or shared equity scheme. You will own your new property.

  • What is the difference between a Lloyds Bank Local Lend a Hand mortgage and other mortgages?

    Local Lend a Hand mortgages allow us to lend a greater proportion of the value of the property you want to buy (up to 95%) at a lower rate than you might otherwise get with another mortgage.

  • What is an indemnity (or guarantee)?

    If you have a small deposit, we may need some extra protection before we agree to a mortgage. Our Local Lend a Hand Scheme give us protection from the local authority in the form of a legal agreement called an indemnity (called a guarantee in Scotland).

    If you could no longer make your mortgage payments your house would be repossessed and sold. If the money from the sale didn’t repay the mortgage we’d lent you, the indemnity or guarantee lets us claim against the local authority to make up the difference. You would still owe the full amount you have borrowed (less any money from selling your home) and you would still be legally responsible for any money still outstanding.

  • Can the indemnity (or guarantee) be applied to a mortgage on a new property if I move home?

    No, the indemnity or guarantee can only apply to the original property.

  • Can I take my mortgage with me if I move?

    You can’t move a Local Lend a Hand mortgage to another property. But if you have transferred to a different type of mortgage, you may be able to take that mortgage with you if you move house, depending on the new mortgage terms. In this case the local authority’s indemnity (or guarantee) would disappear when you move. If you switch to another of our mortgages but don’t move house, the indemnity (or guarantee) stays in place. Remember, if you change to another mortgage, you may have to pay early repayment charges.

  • Can I borrow more money to increase my Local Lend a Hand mortgage?

    No, you can’t borrow more money while you have a Local Lend a Hand mortgage.

  • How do changes in house prices affect Local Lend a Hand mortgages?

    Falling house prices may make it more difficult for you to find another mortgage at the end of your three-year fixed-rate term, and you may have to stay on our Homeowner Variable Rate at that point if you cannot find another mortgage. This is exactly the same for all our mortgage customers.

  • What if I want to pay off my mortgage?

    You can pay it off early or switch to another product at any time, subject to our eligibility criteria for other products. Early repayment charges may apply.

  • Is the area I want to buy in covered by Local Lend a Hand?

    For more detail on the areas where the scheme is available, book an appointment at your local Lloyds Bank branch.

  • What happens if I fall into arrears?

    If you don’t keep up repayments on your mortgage your home may be repossessed. If you’re having difficulty making payments, contact us and we can discuss the options available to you. We may be able to help, for example by rescheduling your payments or allowing a payment holiday. Find out more about facing financial difficulty

  • How long does the indemnity (or guarantee) last?

    We can claim against the indemnity (or guarantee) for up to five years. If you are in arrears of three months or more at any time in the final six months of the first five years, the indemnity (or guarantee) will be extended by another two years.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE