Features and benefits
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
- During the 5-year fixed-rate period your payments stay the same so they're easier to manage.
- You'll need a cash deposit of 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 equal to 20% of the property value.
- You can then benefit from the lower mortgage rates normally for those with 25% deposits.
- If you have more than 5% as a deposit, your Helper can put less than 20% into the savings account.
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 4.00% AER/Gross* for 5 years. Interest is payable on the required minimum balance of £10,000 and above.
- 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 security agreement, but your Helpers should be able to get their money back provided you don't default on the mortgage.
Eligibility
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. Lending is at the Bank's discretion and you must be 18 or over to apply. Security will be required.
Interest rates - Mortgage
Rates effective from 3rd October 2011.
Borrowing, where your deposit and Helpers savings together equal 25% of the property value
| Initial Rate |
Followed by the Homeowner Variable Mortgage Rate, currently |
The overall cost for comparison is |
Commitment fee |
| 4.99% Fixed until 31st January 2017 |
3.99% for the remainder of the term |
5.60% APR |
£799 |
Your helpers will receive a fixed interest rate of 4.50% AER/Gross* for 5 years.
Charges and fees
Commitment Fee
| |
Standard Commitment fees |
Gold customers' fees |
Premier |
| Tracker mortgage |
£999 |
£499 |
£0 |
| Fixed Rate mortgage |
£799 |
£399 |
£0 |
Legal Fees
You must pay your own legal fees and any fees we incur while setting up your mortgage.
Early repayment
The early repayment charge will be 1 month's interest for every whole or part year of the Fixed Rate period outstanding. The minimum charge will be 3 months.
Other fees and charges
You will need to pay these fees as necessary:
- valuation fee
- stamp duties
- taxes
- communication charges
- building insurance
FAQ
How old do I have to be to take out a Lend a Hand Mortgage?
You must be 18 or over in order to take out any lending with Lloyds TSB. This includes mortgages, loans, overdrafts and credit cards.
Do I have to pay anything for taking out a Lend a Hand Mortgage?
There are numerous charges and fees that come with buying a house. You will be charged some of these by the lender, such as a commitment fee, where as other charges will take the form of legal and valuation costs which are not charged by the lender. The charges and fees section in the website will give you an idea of the types of charges you may incur.
Am I guaranteed to be accepted for a Lend a Hand Mortgage?
Unfortunately we cannot guarantee everyone will be approved for a mortgage. How much we lend and the issue of a loan is subject to our assessment of your circumstances.
Does my “helper” have to be my parents?
No. The “helper” can be your parents, grandparents, guardian or good family friend.
Who can I speak to if I need extra information?
For Jersey residents please call 01534 845155, Isle of Man residents 01624 697113, Guernsey residents 01481 706317 or Alderney residents 01481 822340.