Named the ‘lend a hand’ mortgage, it works by giving up to two family members or friends the opportunity to help with buying a property.
The helpers open a savings account with Lloyds TSB and put in a lump sum equivalent to about 20 per cent of the value of the property.
The account is then held as additional security for the mortgage by way of a security agreement.
The initial deposit or equity and the helper’s contribution must equal 25 per cent of the property’s value.
