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.
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.
|Your balance||Annual interest|
This account has a fixed rate of interest so the rate won’t change during the three year term.
Below is an example of what the future balance might be, after interest has been paid:
|Initial deposit||Gross rate||Balance after 36 months|
This example assumes that:
You can apply for this account if:
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.
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. 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.
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.