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Lloyds Bank Mortgage Review
Lloyds Bank offers a range of mortgages to first-time buyers, homemovers and those who are remortgaging. Learn more in our Lloyds Bank mortgage review.
Lloyds Bank mortgages: at a glance
Lloyds Bank offers mortgages on both a capital repayment and interest-only basis, including fixed-rate mortgages. Lloyds mortgages can be taken out for a term of up to 40 years, and applied for online, over the phone, or in a Lloyds branch.
Lloyds Bank Mortgages
2 to 40 years
£25,000
Capital & Interest; and Interest Only
Yes
Yes
Think carefully before taking out any mortgage. Your home may be repossessed if you do not keep up repayments.
The information in this review is correct as at the date the page was last updated. 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.
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What types of mortgages does Lloyds Bank offer?
Lloyds Bank first-time buyer mortgages
Lloyds Bank first-time buyer mortgages tend to be 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, it may still be possible to get a mortgage if a family member is willing to help you out financially.
» MORE: First-time buyer mortgages
Lloyds Bank remortgages
Lloyds Bank offers a range of 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, you may find there are no legal fees or valuation charges to pay.
» MORE: Compare remortgage deals
Lloyds Bank buy-to-let mortgages
Lloyds Bank offers buy-to-let mortgages to both new landlords and those who already have rental property, though eligibility requirements tend to be stricter than on standard residential mortgages.
» MORE: Best mortgage lenders
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 mortgages, where 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 are currently available. 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, can also increase and decrease if you take out a tracker mortgage. This type of mortgage tracks movements in the Bank of England base rate, so you must consider whether you could still afford your monthly repayments if rates were to increase. Lloyds sometimes offers tracker mortgages and sometimes doesn’t.
» MORE: See best mortgage rates
Loan-to-value ratios
Lloyds Bank typically 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 usually be valid for 12 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, it may be possible to overpay by up to 10% of your outstanding mortgage balance each year before charges start to apply.
» 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.
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
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
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 it is likely there are others available that we have not reviewed. 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.
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