Mortgage support
Worried about paying your mortgage? We have various ways that we can help you.
Your first step should be to clear most or all of your debts as quickly as you can. Then, you should find a way of budgeting to save a little each month. To get in the savings habit, aim to put aside a day’s pay every month.
Your next savings priority should be to set up a little pot of money for emergencies in an instant access savings account. You may find it helpful to set up a standing order to your savings account on payday. That way, the money will be transferred on a regular basis before you've had a chance to spend it and you probably won't even miss it.
At a glance
Unexpected challenges are a part of life and savings can help support you through them. Ideally, you should have enough money set aside to cover you for at least three months, but exactly how much you save will depend on your own circumstances.
There are several different types of savings accounts. They differ depending on how much interest they pay and how long you will need to leave your money alone before you can claim that interest. But, if you think you might need to take your money out of the account at short notice and don't want to pay a fee or lose interest, then an instant access savings account is a good choice.
So, if you have some spare money at the end of the month, then you should think about starting to develop some short-term savings habits.
Develop short-term saving habits
A cash ISA is a good option as it is a tax- efficient way to save. This is a savings account that pays interest tax-free up to specific limits. The Government introduced ISAs to encourage us to save. You receive favourable tax treatment from the Government, so you don’t have to pay tax on the interest. Tax treatment depends on your individual circumstances and may change in the future.
To save tax efficiently, you can use your ISA allowance to invest in a stocks and shares ISA. Your annual ISA allowance currently enables you to invest up to a total of £20,000 in a stocks and shares ISA, or spread the full £20,000 across the four separate ISA types (stocks and shares ISA, lifetime ISA (up to the lifetime ISA limit), innovative finance ISA and cash ISA). Tax treatment depends on your individual circumstances and may change in the future.
The value of your investments and the income from them can go down as well as up and you may get back less than you originally invested.
You can often get extra interest if you are prepared to tie up your money for a set number of months with a 'term deposit' or savings bond. These types of savings products may offer a better interest rate but make sure you only put money in there that you won’t need in the short term.
Once you've got into the habit of saving for the everyday, it's time to start thinking about longer-term savings.
It's good to have some savings you can instantly access in case of emergencies. But, it’s also worth thinking about saving for the future and your retirement. Putting together a savings plan now will give you greater long-term security and help put your mind at rest.
You’re never too young to make a will. If you die without a will, any possessions you own may be distributed according to the law rather than how you’d like. By sorting out your will early, you can also make sure that your loved ones don’t pay more inheritance tax than required.
To make the most of your money, make sure you take advantage of your yearly tax-free savings allowance with an ISA.
You can help protect your family’s or dependants’ financial security by taking out life insurance. In the event of your death or if you’re diagnosed with a terminal illness, you could get a lump sum of money. This would help ensure that any outstanding debts such as a mortgage would be covered.
More and more of us are now living longer, so at some point you may want to consider your income in retirement. Speak to your employer to see if they provide a pension or are prepared to contribute on your behalf. Some will match any money you put in yourself.
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS).
Calls may be monitored or recorded to help us improve our quality of service.
PhoneBank® is a registered trademark of Lloyds Bank plc.