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 2.94% , 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.
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.
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.
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?
Keep in mind
*The £200 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.
A mortgage of £130,000 payable over 25 years, initially on a fixed rate for 3 years at 2.94% and then on our variable rate of 4.24% for the remaining 22 years, would require 36 monthly payments of £610.93 followed by 264 monthly payments of £691.23.
The total amount payable would be £204,478.19 made up of the loan amount, plus interest of £74,478.19.
The overall cost for comparison is 4.0% APRC representative.
This is an illustration of a typical mortgage and its total cost.
You've saved your nestegg, so why use it as security?
While your savings are being held as security against the mortgage, they will be locked away in a Lend a Hand Fixed Savings Account.