Lend a Hand
With the Lend a Hand Mortgage, you only need a 5% cash deposit, plus the backing of someone who wants to help you onto the property ladder by putting their savings up as additional security for the mortgage.
- Your helper will need savings equal to 20% of the property value.
- Your deposit and the savings of your helper must equal 25% of the property value.
They still earn interest on their savings, but it means that you can benefit from the lower mortgage rates normally available to customers with a 25% deposit. The offer is only available in branch.
The mortgage
- You can borrow between £5,000 and £350,000.
- You only need a cash deposit of 5% of the property value, although it can be more.
- Your mortgage rate is fixed for 3 years, so you know what your payments will be each month and can plan your personal finances with confidence.
More information
The savings
- Up to two people – likely to be your parents, but anyone who wants to - can lend you a hand. They’re your Helpers
- They open a special Lend a Hand savings account with us and make a lump sum payment into this account of 20% of the value of the property you want to buy. Depending on the level of deposit it doesn’t have to be 20%.
- Your helpers will receive a fixed interest rate of 4.25% AER/Gross* for 3½ years (42 months) interest is payable on the required minimum balance of £2000 and above followed by a variable rate which tracks at 0.50% below the Bank of England base rate; view Lend a Hand Savings Account interest rate,
- Along with your 5% cash deposit, it means you can benefit from the lower mortgage rates normally available to customers with a 25% deposit.
The savings are held as additional security for the mortgage by way of a legal charge, but your Helpers should be able to get their money back provided you don't default on the mortgage.
More information
More about how your Helpers' savings can get you a better mortgage rate.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
