Lend a Hand Mortgage

• Your mortgage rate is fixed for three years, the overall cost for comparison is 4.2% APR, to help you plan your personal finances with confidence.
• You’ll need a cash deposit of at least 5% of the property value.
• You’ll also need the backing of someone who wants to help you by putting their savings up as additional security for the mortgage.
• They’ll need savings of up to 20% of the property value.
• You can then benefit from lower mortgage rates similar to those for customers with 25% deposits.
• You can borrow between £5,000 and £350,000.
• If you have more than 5% as a deposit, your Helper can put less than 20% into the savings account.
• If you’ve got a Lloyds TSB current account and have £1,000 or more a month paid into it, you could apply for our best mortgage rates.
• Please note that for new build properties you will need a deposit of at least 20% of the property value.

• 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 2.70% AER / 2.67% Gross for 3½ years (42 months) interest is payable on the required minimum balance of £2,000 and above followed by a variable rate which tracks at 0.50% below the Bank of England bank rate; view Lend a Hand Savings Account interest rate.
• Along with your 5% cash deposit, it means you can benefit from lower mortgage rates similar to those for customers with 25% deposits.   

The savings are held as additional security for the mortgage by way of a legal charge or guarantee in Scotland, but your Helpers should be able to get their money back provided you don't default on the mortgage.

• 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 of 20% of the value of the property you want to buy. Depending on the level of deposit, it could be less than 20%.
• Your Helpers will receive a fixed interest rate of 3.70% AER / 3.64% Gross for 3½ years (42 months) on their savings. Interest is payable on the required minimum balance of £2,000 and above, followed by a variable rate which tracks at 0.50% below the Bank of England bank rate. See the current Lend a Hand Savings Account interest rate.
• The savings are held as additional security for the mortgage by way of a legal charge (or guarantee in Scotland). Your Helpers should be able to get their money back provided you don't default on the mortgage.

Information for Helpers

One savings account can be opened for each Lend a Hand Mortgage. The account can be in the name of one person, or it can be a joint account with up to two Helpers contributing together.

The savings are held as additional security for the mortgage by way of a legal charge (or a guarantee in Scotland). You can ask for the charge to be removed and your savings released (only if the 42 month period has expired) when the mortgage represents 90% or less of the property's value (provided the initial fixed rate period of the mortgage has expired at that time).

The charge (or guarantee) means that your savings could be used if the borrower defaults on their mortgage payments. Please read the section ‘About the legal charge’ below for important information about the legal charge (or guarantee) and what it could mean for your savings.

You must open the savings account with the full amount that you want to contribute towards helping the borrower.

So, if the borrower has the minimum 5% cash deposit required, then you need to open the account with an amount equal to 20% of the property’s value. If the borrower has a bigger cash deposit, you can put less into the account. For example, if they have 10%, you would only need to put 15% of the property’s value into the savings account.

You can’t make payments or withdraw money from the account after it is opened, even in an emergency.

If the charge is released and the initial 42-month fixed-rate savings period has ended, the Lend a Hand Savings Account will be closed and your savings transferred to the account into which your interest has been paid.

If the charge (or guarantee) is released before the end of the initial 42-month fixed-rate savings period, the Lend a Hand Savings Account must remain open for the rest of the initial 42 months. At the end of this period, it will be closed and the balance transferred to the account into which your interest has been paid.


Opening an account

To open a Lend a Hand Savings Account:

• The mortgage must have been agreed
• You will need to visit a Lloyds TSB branch
• You must be aged 18 or over
• You must be resident in the UK

The interest on your savings, which is paid monthly, must be paid into an eligible Lloyds TSB savings or current account.

About the legal charge (or guarantee in Scotland):

• Although you can’t withdraw your savings during the 42-month fixed-rate savings period, you can ask for the legal charge (or guarantee) to be released at the end of the initial three-year fixed-rate mortgage period provided that the mortgage has reduced to 90% or less of the property’s value at that time.
• The 90% point could be reached either because the value of the property has gone up or the borrower has made repayments that have reduced the amount they owe. If property prices don’t go up or there is a prolonged period of falling property prices, the legal charge (or guarantee) may not be released for a significant period.
• Both you and the borrower need to ask to have the charge (or guarantee) released and we may carry out a valuation of the property to check whether the mortgage has fallen to 90% or less of what the property’s worth. There’s no charge for the first valuation but you or the borrower will need to pay for any additional valuations. The valuation will be charged at our standard valuation fee at that time. See our valuation fees.
• If the borrower defaults on the mortgage while we have the charge (or guarantee) over the savings, then we’re entitled to take money from the savings account to make up the difference. In this situation you may not get your money back.
•  Likewise, if we’re forced to repossess the property at any point while the charge (or guarantee) is in place, but selling it doesn’t raise enough money to pay back the loan, then we can also take money from the savings to make up the difference. Again, in this situation you would not get your money back.

The amount your Helpers contribute means that although you will still have a 95% mortgage, you can benefit from the three-year fixed rates available to people with a higher deposit.

The overall cost for comparison is 4.2% APR, in our 75% mortgage product range.

That’s if you put in the minimum 5% cash deposit and your Helper puts 20% into their Lend a Hand savings account.

Helpers can put in less if you’ve got a bigger deposit. Supposing you had an 8% deposit, your Helpers could put 17% into the account. (For new-build properties you’ll need a deposit of at least 20%of the property value).

Here’s an example:

• Property price: £100,000
• Your deposit amount: £5,000
• Helpers put £20,000 in a Lend a Hand Savings Account
• That adds up to £25,000 , equivalent to a 25% mortgage 
• Your mortgage is 95%, but you get access to similar mortgage rates to people with a 75% mortgage.

Use our guides to find out how mortgages work and what’s right for you.