Lend a Hand mortgage

Get your first home faster with our Lend a Hand mortgage.

No deposit needed. Your family's savings act as security, earning them interest for 3 years.

Conditions apply.

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Why choose a Lend a Hand mortgage

No deposit needed

A family member deposits 10% of your home’s purchase price. They place it in a 3-year fixed-term savings account for security.

Fixed 3-year mortgage rate

Enjoy peace of mind with fixed monthly payments for 3 years. Making it easier to plan and manage your finances.

 

Savings returned with interest

When the 3-year term ends, your family member will get their savings back, with interest. That's as long as you don't miss any mortgage payments.

You own the home

Only you have your name on the mortgage and have legal rights over the property.

How it works

You or your family member must have a Club Lloyds account before applying for a Lend a Hand mortgage.

The savings

Your family member puts 10% of the purchase price of the property away into an Easy Saver or Club Lloyds Saver. 

We'll change that account into a Lend a Hand fixed savings account at the point of completion.

The savings account can only be in the name of 1 family member.

Once the money is in the Lend a Hand fixed savings account, it legally must stay there for 3 years.

The mortgage

The money in the Lend a Hand fixed savings account acts as security for your mortgage.

Your mortgage interest rate is fixed for 3 years. This means your monthly payments stay the same during that time.

For more information, read the Lend a Hand scheme guide (PDF, 195KB).

After 3 years

At the end of the 3-year term, your family member can get their money back plus interest. That’s as long as you don’t miss any mortgage payments or your home is not repossessed.

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

Let's break it down

Who it's for

We’ve designed our 3-year fixed rate Lend a Hand mortgage for first-time buyers who have: 

  • a small or no deposit
  • a close family member that can help secure the mortgage. They need to place 10% of the purchase price in a 3-year fixed-term savings account. The account will have a legal charge over it. 

For more information, read the Lend a Hand scheme guide (PDF, 195KB).

The nuts and bolts of Lend a Hand

  • Your mortgage rate is fixed for 3 years. We’ll tell you what rates are available when you apply. At the end of the fixed period, if you qualify you can also choose one of the other mortgage products we offer including fixed rates. If you don't select a new mortgage product your rate will switch to one of our variable rates. Your Mortgage Illustration will set out the interest rate you'll switch to.
  • You can only take out your loan as a repayment mortgage. So, every month, your payments reduce the amount you owe, as well as paying off the interest.
  • The maximum loan is £500,000.
  • The maximum mortgage term is 30 years.
  • You can also put down a deposit of up to 4.99%. This is alongside the security given by your family member.

 

  • If you have a close family member who can place 10% of the purchase price of your home in a 3-year fixed-term savings account, then they can be your supporter for the Lend a Hand mortgage.

    Your family member must live in England or Wales and need to be:

    • related to you through birth or blood.
    • related to you through marriage or civil partnership.
    • your stepchild or adopted child.
    • your in-laws.
    • an aunt or uncle.

    The money stays in the Lend a Hand fixed savings account and earns interest for your family member each year.

    If you keep up with your mortgage payments, we'll remove the legal charge from the savings account after the Lend a Hand 3-year fixed-rate mortgage ends. Your family member can't access their savings until the legal charge is released. They must also wait until the savings account reaches the end of its fixed term to access their money.

    If you miss a mortgage payment, we can use money from the savings account to help you catch up. If we take possession of the property and the sale doesn't cover the mortgage, we can also use the money from the savings account to cover the difference.

You could lose your home if you don’t keep up your mortgage repayments

Why Lend a Hand works for buyers and their families

For 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 when you call us. Lines are open Monday to Friday 8am to 8pm and Saturday 9am to 4pm.
  • You could get a discounted mortgage rate if you or your family member is a Club Lloyds customer.
  • We'll pay your standard valuation fee.

For family members

  • Support a family member in starting their journey to homeownership. Buying a home has become challenging. Many first-time buyers appreciate a bit of help.
  • Get your money back plus interest after 3 years. That’s if the buyer doesn’t miss any mortgage payments or their home is not repossessed.
  • £300 cashback towards your legal fees. You’ll get this through the conveyancer when the mortgage completes.

While being held as security against the mortgage, we lock your savings in a Lend a Hand fixed savings account.

Lend a Hand fixed savings

Before you go ahead

Keep in mind

  • You should think about what having a low or no deposit could mean. It might increase the risk of negative equity, which happens when you owe more on your mortgage than your home is actually worth.
  • You or your family member must have a Club Lloyds 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.
  • You can't use the Lend a Hand mortgage for interest-only mortgages. It's also not available for new builds, right to buy, shared equity, or shared ownership.
  • We can change or withdraw the Club Lloyds offer at any time.
  • A £5 monthly fee applies to the Club Lloyds account unless £2,000 is paid in each month.

 

How to apply for a Lend a hand mortgage

Looking to apply? Follow these simple steps to apply.

Give us a call

It's not possible to complete an online agreement in principle (AIP) for Lend a Hand mortgages.

To apply for a Lend a Hand mortgage, you need to speak to one of our advisers.

 

Speak to an adviser

Book an appointment

We'll send your request to one of our mortgage experts. They'll contact you shortly. Together, you can arrange an appointment that suits you. You can choose to meet by video, over the phone, or in the branch.

Book an appointment

Let’s look at the details

  • You can apply for a Lend a hand mortgage if you're a first-time buyer. We consider a first-time buyer as someone who has never had a mortgage or bought property in the UK or abroad.

    If 1 applicant is a first-time buyer, the other person on the application can also get this mortgage.

    Either you or your family member must have an open Club Lloyds personal current account. A monthly fee for this account may apply.

    You must be:

    • planning to use the home as your main residence
    • aged 18 or over
    • receiving your income in sterling
    • living in England or Wales. 

     

     

  • To apply for a Lend a Hand mortage, you need to either:

    Your family member can attend your mortgage interview, but they don’t have to. You’ll need to give personal details about you and your family member. Let them know that you’ll tell us their personal information on their behalf if they don’t attend the interview.

    We'll get permission to share information about you. This includes details about your application and mortgage account with your family member while they help you.

    After your mortgage interview, your family member will need to open the savings account online if they don’t already have one.

    You’ll receive an email from your mortgage adviser. Please forward this email to your family member. The email will include instructions on how to open the savings account and a declaration. Your family member needs to complete the declaration and return it to you.

     

  • You don't need a deposit for the Lend a Hand mortgage. But, if you have one, you can put down up to 4.99% of the total property value as a deposit. This means you'll borrow a smaller amount, and the overall cost of your mortgage will be less. 

  • The legal charge is an agreement between your family member and us.

    If you miss mortgage payments, we can take money from your family member’s savings account to repay the amount owed. In this case, your family member won't receive all their money back.

    We'll share mortgage account information with your family member. This includes details if you miss payments and any actions we take to collect them.

    The legal charge will normally last 3 years from your mortgage start date. If you fall behind on payments, we may extend the deadline. This extension will continue until your account is up to date for 6 months in a row.

  • If you miss 2 or more payments on your mortgage, we’ll be entitled to take money from the savings account. We’ll give your family member notice before we do this.

    We can also take money from the savings account if we take your property and the sale doesn't cover your debt. 

    The amount you owe will include any costs we pay to take possession of the property and sell it. We may continue to add interest to your mortgage until your missed payments are brought up to date. This means the amount you owe may increase.

    As a first-time buyer, you'll need to pay any amount not covered by your savings account. 

  • No, you can’t combine a Lend a Hand mortgage with our other mortgage offers, and you can’t use it for certain property types.

    For example, it’s not available if you are buying: 

    • a new-build property
    • a self-build property
    • a Help to Buy property
    • under a shared equity or shared ownership scheme
    • under a right-to-buy scheme.

Explore your options

We want to make sure you know about our other mortgage options. Here are some that might suit you.

More family help options

If the Lend a Hand mortgage isn’t right for you, explore other ways your family could help you buy your first property.

View my options

First-time buyer options

Look at our other mortgages for first-time buyers.

First-time buyers

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