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Published 01 December 2023

Lloyds Bank Mortgage Review: Pros, Cons & Features

Lloyds Bank offers a range of mortgages to first-time buyers, homemovers and those who are remortgaging. Mortgages are also available for borrowers using government schemes such as Right to Buy, Shared Ownership and First Homes to buy a home. Learn more in our Lloyds Bank mortgage review.

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Lloyds Bank mortgages: at a glance

Lloyds Bank offers mortgages on both a capital repayment and interest-only basis, including fixed-rate, tracker rate and green mortgage options. The minimum mortgage term of two years is among the shortest of the lenders we’ve reviewed, and you can apply for a Lloyds Bank mortgage online, over the phone, or in a Lloyds branch. Customer support is available through the same channels, as well as the Lloyds Bank mobile app. 

Some Lloyds Bank mortgages have early repayment charges and some don’t. Where they do, it’s possible to overpay by up to 10% of the amount you owe at the start of a new year each year without having to pay an early repayment charge.

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Lloyds Bank Mortgages

Lloyds Bank Mortgages
  • Available Terms
    2 to 40 years
  • Minimum Loan Amount
  • Repayment Options
    Capital & Interest; and Interest Only
  • Agreement in Principle Online
  • Track Your Application Online
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Think carefully before taking out any mortgage. Your home may be repossessed if you do not keep up repayments.

This is our review of a lender and not the products, interest rates, fees or deal terms they offer. Many lenders also offer preferential products exclusively via brokers and intermediaries. This review does not constitute advice or recommendation.

Lloyds Bank mortgage pros & cons


  • Capital repayment and interest-only mortgages are available with Lloyds Bank. 
  • Mortgages at 85% LTV and over are available.
  • There is a wide range of mortgage terms, up to 40 years.
  • Lloyds offers Right to Buy, Shared Ownership and First Homes mortgages.
  • Several customer support options. 


  • Minimum loan amount of £25,000 is higher than other lenders we’ve reviewed.

Lloyds Bank mortgage overview

Lloyds Bank is part of Lloyds Banking Group, the biggest mortgage lender in the UK. The bank provides mortgages for first-time buyers, home movers and those looking to remortgage. It also offers buy-to-let mortgages to new and existing landlords. 

Lloyds Bank mortgages are available for terms of between two and 40 years, and for amounts of £25,000 and above. Customer support is available online, over the phone, at Lloyds branches and via the Lloyds mobile app. 

Product optionsCapital repayment 
85% loan-to-value or higher
Right to Buy
Shared Ownership
First Homes
Term length2 – 40 years
Minimum loan size£25,000
Allows overpaymentsYes
Mortgages are portableYes
Ways to applyOnline, phone, in branch 
Customer service contact optionsOnline, phone, in branch, mobile app
Fairer Finance customer experience rating65% (as at 31 October 2023)

Where Lloyds Bank mortgages stand out

Wide range of mortgage product options

Lloyds Bank offers an extensive range of mortgage options, from fixed-rate and tracker mortgages to more niche products such as green mortgages. Its Lend a Hand mortgage is designed for first-time buyers whose families are helping them onto the property ladder, while mortgages for those using Shared Ownership, the Right to Buy scheme, the First Homes scheme, and the Forces Help to Buy scheme are also available.

Multiple ways to apply and seek support

Lloyds Bank welcomes applications for its mortgages over the phone, online or at one of its branches, with the same channels, plus its mobile app, available as a means to access customer support. 

Broad range of mortgage terms

The maximum mortgage term of 40 years that Lloyds allows is longer than what many of the lenders we’ve reviewed offer, while the minimum term of two years is shorter than some allow. Note that opting for a longer repayment period will mean you pay more interest overall.

You can upload documents and sign online

Lloyds Bank aims to make it simpler for you to arrange your finances online and allows you to get an agreement in principle online and upload the documents it needs to check. It’s also possible to track your application online and sign your mortgage agreement electronically. 

Where Lloyds Bank mortgages fall short

High minimum mortgage amount

If you want a smaller mortgage, you may need to look beyond Lloyds, where the minimum mortgage allowed is £25,000. By comparison, some of the lenders we’ve reviewed set much lower minimum mortgage amounts. 

» MORE: Best mortgage lenders

What types of mortgages does Lloyds Bank offer?

Lloyds Bank first-time buyer mortgages

Lloyds Bank first-time buyer mortgages are available up to 95% loan-to-value (LTV), meaning you may get a mortgage with a 5% deposit. Alternatively, if you don’t have a deposit, Lloyds Lend a Hand mortgage is designed to allow a family member to help you out financially.  

Lloyds Bank remortgages

Lloyds Bank offers a range of mortgage options if you want to remortgage from a different lender to the bank. If you already have a Lloyds Bank mortgage and want to switch to a new Lloyds mortgage deal, there will be no legal fees or valuation charges to pay. Early repayment charges will also be waived if you’re in the final three months of your existing deal.

Lloyds Bank buy-to-let mortgages

Lloyds Bank offers buy-to-let mortgages to both new landlords and those who already have rental property. You must be at least 21 years old and have a minimum 30% deposit to apply. 

Lloyds Bank mortgage features

Repayment options

Lloyds Bank offers mortgages on a capital repayment and an interest-only basis. 

With a capital repayment mortgage, the repayments made each month pay off your interest and some of the original loan amount, or capital, you borrowed. As long as all repayments are made in full and on time, everything that is owed should be paid off by the end of your mortgage term. 

By comparison, it is usually more difficult to get an interest-only mortgage and it will often come with a lower LTV limit than a repayment mortgage. With an interest-only mortgage, the monthly repayments you make will only cover the interest charges for that month – this means you’re not paying off any of your original loan amount as you go. Instead, lenders require you to have a repayment strategy in place that aims to pay back your loan amount when your mortgage term ends. Typically, this will be in the form of an endowment plan or other investment. 

» MORE: Interest-only vs. repayment mortgages

Mortgage rates

Lloyds Bank offers fixed-rate and tracker rate mortgages if you’re borrowing a minimum of £25,000.

With fixed-rate mortgages, the interest rate you pay is fixed for a certain length of time – typically two, five or perhaps 10 years, depending on the deals that Lloyds is currently offering. As a result, your monthly repayments stay the same for the duration of your fixed-rate deal, giving you certainty over the size of the payments you need to make. 

At the end of your deal, you may decide to remortgage to a new deal, either with Lloyds or a different lender, or alternatively, you’ll automatically move onto Lloyds’ standard variable rate (SVR). This could rise or fall at any time, and will usually be higher than the rate you’ve been paying.  

The mortgage rate you pay, and therefore your monthly repayments, also have the potential to rise and fall with a Lloyds tracker mortgage. Because the rate follows movements in the Bank of England base rate, it’s important to work out whether your monthly repayments would still be affordable if rates were to go up.

» MORE: Fixed- vs. variable-rate mortgages

Loan-to-value ratios

Lloyds Bank currently offers mortgages to 95% LTV. This means there are mortgage options available if you have a 5% deposit or higher. 

» MORE: Why your LTV is important for a mortgage

Mortgage offers 

If you receive a mortgage offer from Lloyds Bank, it will be valid for between three and six months. The mortgage rate offered should not change throughout this period.  

Making overpayments

It is possible to overpay your mortgage but note that some Lloyds Bank mortgage products have limits and early repayment charges (ERCs) that may apply, and some don’t. If your mortgage does have ERCs, each year you can usually overpay by up to 10% of your outstanding mortgage balance, as recorded on the 1 January of that year, before charges start to apply. 

If your Lloyds Bank mortgage does not have an ERC, you can overpay by how much you like without incurring a charge, as long as you’re not paying off your mortgage in full. 

Lump sum and regular overpayments are both allowed.

» MORE: Mortgage overpayment calculator

Paying off your mortgage early

It is possible to pay off your Lloyds Bank mortgage in full whenever you want, but there may be an early repayment charge, and other fees, to pay. If you’re thinking of paying off your mortgage early, you should request a redemption statement first. 

Porting your mortgage

If you’re moving and want to take your Lloyds mortgage with you to your new home, you can apply to Lloyds to port your mortgage. Note that porting may incur certain fees and early repayment charges. 

Customer support

Lloyds has a number of channels through which you can seek customer support, including online, by phone, at Lloyds branches and via its mobile app. If the virtual assistant on the website cannot provide a satisfactory answer, you will be connected to live chat. 

Mortgage calculators

The Lloyds website offers a number of mortgage calculators and tools to help first-time buyers, home movers and those remortgaging. There is an overpayment calculator and an interest rate change calculator too.

» MORE: Our mortgage calculators

Customer ratings

Lloyds Bank has been awarded a customer experience rating of 65% by Fairer Finance in relation to mortgages, which means it ranks joint eighth out of the 23 lenders it reviewed. The ratings assess how happy borrowers are with the lender, the trust that they have in a brand, and how the provider responds to complaints. How lenders explain their mortgage products and options and the documents supplied to borrowers are evaluated for simplicity and clarity. 

This information from Fairer Finance was correct as of 31 October 2023.

How can I apply for a Lloyds Bank mortgage? 

You can only apply for a Lloyds Bank mortgage directly to the bank yourself. If you are confident in choosing a suitable mortgage without advice, you can apply for a Lloyds Bank mortgage online. But if you have any doubts at all, it’s sensible to seek mortgage advice. Lloyds Bank has its own mortgage advisers who can discuss your requirements, though they will only be able to recommend Lloyds Bank mortgages. 

If you want advice on mortgages from other lenders, you will need to speak to an independent financial advisor (IFA). It’s important to check if an IFA reviews mortgages from a limited number of lenders or has a whole of market view. IFAs, who may also be known as mortgage brokers or intermediaries, may charge for their services. Lloyds Bank does not accept applications from IFAs.

» MORE: Do I need a mortgage adviser? 

How to apply for a Lloyds Bank mortgage

To apply for a mortgage from Lloyds Bank you should:  

  1. Gather the relevant information: Lloyds will ask you for certain information and documents, so you’ll need to be prepared. This will include details and proof of your income, employment, outgoings, the property you’re buying, and your identity and address.  
  2. Get an agreement in principle (AIP): This will give you an idea of how much Lloyds may be willing to let you borrow. It’s not a definite promise you’ll get a mortgage, but it won’t affect your credit rating. 
  3. Start your formal application: If you get an AIP, you’re ready to apply for a Lloyds Bank mortgage.  

How easy is it to apply for a Lloyds Bank mortgage? 

Lloyds Bank offers the option to upload documents, track your application online and sign your mortgage agreement electronically. Getting an agreement in principle for a mortgage is online too. 

Lloyds Bank Mortgage FAQs

Is Lloyds a good bank to be with?

Lloyds Bank is part of Lloyds Banking Group, which can trace its history back more than 325 years and is the largest mortgage lender in the UK. Lloyds Bank is regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

How long does it take for Lloyds to release mortgage funds?

Lloyds says it can take between five and seven working days for mortgage funds to be released once requested by a solicitor. 

This is our review of a lender and not the products, interest rates, fees or deal terms they offer. Many lenders also offer preferential products exclusively via brokers and intermediaries. This review does not constitute advice or recommendation.

Review methodology

At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.

Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.

Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.

Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.

You can view our full review methodology here.

    About the Author

    Tim Leonard

    Tim is a writer and spokesperson at NerdWallet and holds the Chartered Insurance Institute (CII) Level 3 Certificate in Mortgage Advice. He has over 20 years’ experience writing about almost…

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