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Lend a Hand Mortgage

Saving a deposit for your first home isn’t always easy. We’re always here to help you find the right mortgage. But did you know your family can now help you get onto the property ladder.

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

  • No borrower deposit required - Instead, a family member can put down 10% of the purchase price of your home into a 3 year fixed term savings account.

  • It’s your home - Only you will be named on the mortgage and only you will have legal rights over the property.

  • Your payments will stay the same for the first 3 years - That’s because your mortgage will be on a fixed interest rate for 3 years at 2.99% , making it easy to budget each month.

  • The savings will earn interest - When the 3 year term ends, your family member will get their savings back with interest, paid at 2.50% gross/AER/fixed, as long as your mortgage repayments have all been made.

How it works

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Step 1: the savings

Your family member puts the 10% of the purchase price into a Lloyds Savings account.

Once the money is in the Lend a Hand Fixed Savings Account, it legally can’t be taken out for 3 years.

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Step 2: the mortgage

The money in the savings account acts as security for your mortgage.

Your mortgage interest rate will be fixed for 3 years, so your monthly payments will stay the same over that time.

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Step 3: after 3 years

At the end of the 3 years your family member will be able to take their money out, plus interest. If you've missed any payments they could get back less than deposited or we could keep the savings for longer.

We'll also contact you with details of the mortgage options available.

It’s normal to have lots of questions about your mortgage. So what is it about Lend a Hand that makes it great for first time buyers?

  • You don’t need to save for a deposit - You can borrow between 95% and 100% of the purchase price of your home.
  • It’s your home - While your family member helps you out with the deposit, your new home is all yours.
  • Help when you need it - Our qualified mortgage advisers are ready to answer any questions by phone. Monday to Friday 8am to 8pm and Saturday 9am to 4pm.
  • £500 cashback with Club Lloyds - If you or your family member is a Club Lloyds customer, we’ll give you £500 cashback when you complete on your mortgage with us*

Keep in mind

  • You or your family member must have a Club Lloyds Current Account before applying for a Lend a Hand Mortgage.
  • You can borrow up to maximum of £500,000 for your mortgage.
  • You need to be a first time buyer who’s living and buying a home in England or Wales.
  • The Lend a Hand Mortgage can’t be used for interest only mortgages, New Build, Right to Buy, shared equity, or shared ownership. 
  • The Club Lloyds £500 cashback offer can stop at any time.

*The £500 cashback would be paid to you, even if your family member is the Club Lloyds customer. The £3 per month Club Lloyds fee applies unless £1,500 paid in each month. 

Representative Example:

A mortgage of £130,000 payable over 25 years, initially on a fixed rate for 3 years at 2.99% and then on our variable rate of 4.24% for the remaining 22 years, would require 36 monthly payments of £614.32 followed by 264 monthly payments of £692.03

The total amount payable would be £204,812.19 made up of the loan amount, plus interest of £74,812.19

The overall cost for comparison is 4.0% APRC representative.

What is a Representative Example:

This is an illustration of a typical mortgage and its total cost.

You've saved your nestegg, so why use it as security? 

  • Help a family member to get their foot on the ladder - Buying a home isn’t as easy as it used to be, and most first time buyers could use a helping hand.
  • Get your money back plus interest - That’s as long as the buyer doesn’t miss any mortgage payments or their home is not repossessed. Your money will earn 2.50% gross/AER/fixed over the 3 years. 
  • £300 cashback towards your legal fees - You’ll get this through the conveyancer when the mortgage completes.

More information can be found in our guide to your Lend a Hand mortgage and Lend a Hand Fixed Savings Account conditions. For a definition of AER, Gross and other terms please view our savings glossary.

Keep in mind

  • Your savings will be used as security, in case the buyer misses any mortgage payments.
  • You legally can’t take out your savings for 3 years which means this account cannot be closed early. If the buyer misses any mortgage payments, we will take this from your savings. That means you may get back less than you put in.
  • At the end of the 3 years, you will be able to take out your savings plus interest. That’s as long as the buyer hasn’t missed any payments or their home hasn’t been repossessed.
  • If the buyer is behind on their payments in the final 6 months, the savings must stay in the account for longer. You can only take out your savings when the mortgage payments are up to date for 6 months.
  • We recommend that you obtain independent legal advice. That’s why we give you £300 towards this.
  • Interest rates correct as at 28/01/2019.

Financial Services Compensation Scheme

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How to apply

You can only apply for a Lend a Hand Mortgage by calling us on 0345 122 1512.

We’re open Monday to Friday 8am to 8pm and Saturday 9am to 4pm. We’re closed Sunday and Bank Holiday.

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Not sure if this is the right mortgage for you?

Take a look at our other mortgages for first time buyers.