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Lend a Hand Fixed Savings Account

This account is for savers who want to help a family member buy their first home through the Lend a Hand Mortgage Scheme. The account can be held by up to two people.

Help a family member buy their first home sooner

You can help a family member get on the property ladder by using your savings.

Instead of them putting down a deposit, you can move 10% of the property purchase price into this savings account as security for three years against the Lend a Hand Mortgage.

Get your savings back plus interest

  • Get fixed interest paid annually for the three year term. Choose for it to be paid into this account or another in your name.
  • £300 cashback towards fees for legal advice.
  • At the end of the term the legal charge will be released, as long as the mortgage is up to date with no missed payments or defaults. The charge can be released earlier if the mortgage is paid off in full during the term.

Keep in mind

  • The legal charge means if there are defaults on the Lend a Hand Mortgage we can take money from the savings account. This means that you may get back less than the amount paid in.
  • You will not be able to access the savings during the three year term or close the account early.
  • At the end of the three year term, the account will change to a Standard Saver. If the mortgage is in arrears the charge may continue on the Standard Saver.
  • You should obtain independent legal advice.

Summary box for Lend a Hand Fixed Savings Account

1. What is the interest rate?

Your balance Annual interest
Gross AER
£1+ 2.50% 2.50%
  • The interest rate is fixed, which means it won't change during the three year term.
  • It's paid every year. This will be on the anniversary of when the account changed from an Easy Saver/Club Lloyds Saver to a Lend a Hand Fixed Savings Account.
  • It will be paid to the account you chose when opening the Easy Saver or Club Lloyds Saver account.

2. Can Lloyds Bank change the interest rate?

No.
This account has a fixed rate of interest so the rate won’t change during the three year term.


3. What might the future balance be?

Below is an example of what the future balance might be, after interest has been paid:

Initial deposit Gross rate Balance after 36 months
£20,000 2.50% £21,537.81

This example assumes that:

  • We do not withdraw any money to cover any Lend a Hand Mortgage payment arrears.
  • Interest is paid into the account.

4. How do I open and manage my account?

You can apply for this account if:

  • It is being opened as part of the Lend a Hand Mortgage Scheme.
  • You agree the balance, excluding interest, can be held as security against the Lend a Hand Mortgage.
  • You accept you will not be able to access the savings until the charge is released.
  • You’re 18 or over, resident in England or Wales, and you aren’t a named applicant on the mortgage.
  • Either you or the mortgage applicant have a Club Lloyds current account.

You should obtain independent legal advice before opening the account.

You can only apply over the phone.

You will need to pay your deposit into either an Easy Saver or Club Lloyds Saver savings account which we will open for you over the phone. The deposit must be 10% of the property purchase price and can't be more than £50,000. We need to receive this at least 7 working days before the property purchase completes. Before the house purchase completes the account will change to a Lend a Hand Fixed Savings Account. The account can be held by up to two people. The term starts on the day the account is changed to a Lend a Hand Fixed Savings Account.

You can manage the account online, in branch and over the phone.


5. Can I withdraw money?

You cannot take out any money during the term or close the account early.

As the money is held as security against the Lend a Hand Mortgage, we can withdraw from the account to pay off any arrears on the mortgage. This means that you may get back less than you deposited.

After 3 years the account will change to a Standard Saver. See Standard Saver interest rates (PDF). Before this happens, we'll contact you to explain your options and next steps. If the mortgage had been kept up to date then you will then be able to access your savings. However if the mortgage was not kept up to date, the legal charge may continue after the 3 year term with the Standard Saver. You will then be able to access your money when the mortgage repayments are kept up to date for six consecutive months.


6. Additional information

Gross rate means we won’t deduct tax from the interest we pay on money in your account. It’s your responsibility to pay any tax you may owe to HM Revenue & Customs (HMRC).

AER stands for Annual Equivalent Rate. Whenever you see an advert for a savings account which shows an interest rate, you will see the AER. This means you can use the AER to compare accounts. It shows what the interest rate would be if your interest was paid and compounded once each year.

For more definitions, view our glossary.


Things to check before you apply

Make sure you're happy for a legal charge to be held over your savings

  • You will need to deposit 10% of the property purchase price into an Easy Saver or Club Lloyds Saver. That account will change into a Lend a Hand Fixed Savings Account before the purchase completes.
  • The legal charge means if there are defaults on the mortgage we can take money from the savings.
  • You will not be able to access the savings until the charge is released.

You can apply for the account if:

  • Your family member has started their application for a Lend a Hand Mortgage with us.
  • You're 18 or over and live in England or Wales.
  • Either you or the mortgage applicant have a Club Lloyds current account.

 How to apply

You should read the summary box and the terms and conditions (PDF) before you apply.

To apply, call us on 0345 122 1512.

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