How you could help a family member buy their first property

It's challenging for first-time buyers in the UK to enter the property market. This is because of a mix of high house prices, an increased cost of living, and having to save a substantial deposit.

One option first-time buyers might consider is seeking financial support from family members. If you've been asked to consider providing this type of support, you might want to know more about what it entails. 

Learn more about the options for you if you’re a family member of a first-time buyer wanting to get on the property ladder. 

What options are there?

Lend a Hand mortgage

If you have savings you don't need access to in the short term you could help the first-time buyer out by using these as a security deposit for their first property.

  • You'll put down 10% of the property purchase price in a fixed-term savings account which can't be accessed for three years.
  • Only your family member will be named on the mortgage.
  • We'll use your savings to cover any mortgage payments that might be missed by the first-time buyer.
  • After three years, you'll get your money back with added interest.
  • Conditions and exclusions apply.
     

Go to Lend a Hand mortgages

First Home Deposit Gift

You can borrow more on your Lloyds mortgage and gift it towards a family member's first home deposit. It can cover all or part of their deposit and when you gift them, we’ll gift you. Once they complete on their first time buyer mortgage with us, you'll receive a £500 cashback reward.

 

 

Go to First Home Deposit Gift

Joint mortgage

You might be able to apply for a mortgage with a family member as long as it's affordable for everyone involved.

  • The first-time buyer might be able to take out a bigger mortgage with your details included.
  • Both you and the first-time buyer will be responsible for paying the mortgage every month. 
  • Your age might mean the mortgage has a shorter term. 
  • First-time buyer relief for stamp duty might not apply.
  • Conditions and exclusions apply.


 

Go to joint mortgages

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

What are my other options?

There are other ways you can help a first-time buyer with their deposit.

Save for a deposit for the buyer

This means you’ll put any money for the deposit in a savings account and take it out once you’ve saved up enough. 

We have a range of savings accounts to choose from. You can open a savings account either online or using the mobile app.

Go to savings

Gift a deposit

As the name suggests, this is where you gift someone money for all or part of their deposit. You’ll need to prove the money is a gift by writing a gifted deposit letter for your mortgage provider.

What does a gifted deposit letter need to include?

There are Inheritance Tax implications you should be aware of with gifted deposits.

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Mortgage Calculators

View our range of mortgages and see what deposit you’ll need for your new home.

Use a calculator

Club Lloyds mortgage offer

Club Lloyds current account customers could get a discount off their initial rate.

Club Lloyds

Get in touch

You can call us or book a video mortgage appointment from the comfort of your own home. 

Contact us

First time buyers help

Looking to take your first step on the property ladder? Find out how mortgages work and what to expect when you get your first one.

First time buyers help

First time buyers help

Looking to take your first step on the property ladder? Find out how mortgages work and what to expect when you get your first one.

First time buyers help