Today, Lloyds Bank is a part of the Lloyds Banking Group - the largest mortgage provider in the UK with a 16.8% share of the market - and houses other banks, Halifax, Bank of Scotland & Birmingham Midshires. The banking group also houses the life insurance brand Scottish Widows as well as motor finance companies, Black Horse and Lex Autolease.
Lloyds Bank was highly commended in the 'Best Remortgage Provider' category at MoneyFacts Awards 2023 and won Euromoney's 'Best Bank in the UK' award in 2023.
Lloyds Bank mortgage key features
- You can choose a mortgage term of between 2 years and 40 years
- Fixed-rate mortgages can be arranged for a period of 2, 5 or 10 years
- Tracker rate mortgages are available for mortgages of £500,000 or more
- Overpayments are allowed on some mortgages up to 10% of the mortgage balance
- Club Lloyds current account customers can access exclusive offers on mortgage products including a 0.20% discount on the initial mortgage rate
- Mortgages are available for first-time buyers, home movers, buy-to-let purchases and those looking to remortgage or arrange later-life lending
- Product incentives include free purchase and remortgage conveyancing
- Many Government schemes are supported including: Mortgage Guarantee, First Homes, Help to Buy ISA; Help to Buy Equity Loan, Forces Help to Buy and Right to Buy
- Up to £1,000 cashback with Eco Home Reward (closing date was February 2023)
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What types of mortgages does Lloyds Bank offer?
Lloyds Bank offers a comprehensive range of mortgage types that include:
- Fixed-rate mortgages - these are mortgages arranged with an interest rate that will remain the same for the deal period which can be set to 2, 5 or 10 years
- Tracker-rate mortgages - the interest rate fluctuates with the Bank of England base rate so the rate can increase as well as reduce over the deal period of 2 or 5 years.
- Standard variable rate mortgages - the lender variable rate that Lloyds Bank charges can change at any time and is the rate that a borrower will begin paying once their initial mortgage deal term ends (unless they transfer to a new deal).
Borrowers can arrange to repay their Lloyds Bank mortgage on either a repayment (capital and interest) or interest-only basis. Still, you can also choose a repayment method that is a combination of repayment and interest-only.
How much can I borrow on a mortgage with Lloyds Bank?
The amount you can borrow for your mortgage with Lloyds Bank is based on a number of factors and these include:
- your income
- your total deposit
- current debt
- current loan or other mortgage repayments
- your monthly bills
- your credit rating
Lloyds Bank does not publish income multiples for how much you can borrow so you will have to contact Lloyds directly so that they can establish this for you.
Lloyds Bank loan-to-value limits for first-time buyers
You can arrange a mortgage with Lloyds Bank with as little as a 5% deposit which means that your loan-to-value (LTV) will be 95%. Lloyds Bank also offers mortgage deals to first-time buyers based on 60% to 90% LTV.
Lloyds Bank loan-to-value limits for home movers
Movers can arrange a mortgage loan of 60% to 95% loan-to-value (LTV) with Lloyds Bank and lower LTVs are possible as long as you meet the minimum mortgage loan amount of £25,000.
Lloyds Bank loan-to-value limits for remortgaging
Borrowers who are looking to remortgage from their existing mortgage deal will find that Lloyds Bank limits remortgages to 90% loan-to-value. You can borrow between 60% and 90% of your home value on a remortgage with Lloyds. Additionally, you can arrange a remortgage that works out to less than 60% loan-to-value but you will need to meet the minimum mortgage amount of £25,000.
What is the maximum mortgage term available with Lloyds Bank?
You can arrange a mortgage term of up to 40 years with Lloyds Bank which is one of the longer terms available on the mortgage market. You should note that your mortgage term will be limited by your age when the term comes to an end as you cannot arrange a mortgage term that takes you beyond the age of 80 years old with Lloyds Bank.
What mortgage interest rates does Lloyds Bank charge?
The interest rate charged by Lloyds Bank will fluctuate from time to time and is dependent on many factors including, the amount of deposit or equity you present, the size of your mortgage loan and the type and term of mortgage you choose. You will also find that the interest rate and type of mortgage available is limited by the value of your mortgage.
Fixed-rate mortgage deals with Lloyds Bank
| Loan-to-value (LTV) | Interest rate - 2-year fixed rate | Interest rate - 5-year fixed rate |
| 60% | 4.21% | 3.88% |
| 80% | 4.61% | 4.13% |
| 90% | 5.47% | 4.92% |
| 95% | 5.55% | 4.95% |
^Interest rate is based on a home value of £350,000 and a purchase mortgage over 25 years
Tracker-rate mortgage deals with Lloyds Bank
| Loan-to-value (LTV) | Interest rate - 2-year tracker rate |
| 60% | 5.48% |
| 80% | 5.66% |
^Interest rate is based on a home value of £350,000 and a purchase mortgage over 25 years
Lloyds Bank mortgage fees
Product fees
At the time of writing, Lloyds Bank product fees vary between £0 and £999 for most mortgage deals. Like many mortgage lenders, Lloyds Bank does allow borrowers to add the product fee to the mortgage balance but you should consider the fact that you will pay interest on your product fee if you choose to do this. Alternatively, you can pay the product fee upfront. Product fees are sometimes referred to as lender fees and you will usually be required to make this payment before or at the point that you complete your mortgage.
Legal fee
Lloyds Bank offers a range of mortgage products that are called 'Hassle Free Mortgages' which are available with free basic conveyancing included. Hassle Free Mortgage customers can choose a service provider using Lloyds Bank's conveyancing panel. Mortgage customers can of course also source their own legal representative to carry out the legal work of conveyancing, should they prefer.
Valuation fee
At the time of writing, Lloyds Bank offers free Level 1 mortgage valuation for applicants but valuations that require a Level 2 valuation are chargeable as detailed below.
| Property value | Level 2 survey and valuation fee |
| Up to £150,000 | £225 |
| £150,001 to £250,000 | £250 |
| £250,001 to £300,000 | £275 |
| £300,001 to £500,000 | £300 |
| £500,001 to £600,000 | £350 |
| £600,001 to £700,000 | £400 |
| £700,001 to £800,000 | £500 |
| £800,001 to £900,000 | £550 |
| £900,001 to £1,000,000 | £650 |
| £1,000,001 to £1,200,000 | £700 |
| £1,200,001 to £1,400,000 | £800 |
| £1,400,001 to £1,500,000 | £850 |
| £1,500,001 to £1,700,000 | £950 |
| £1,700,001 to £1,900,000 | £1,050 |
| £1,900,001 to £2,000,000 | £1,150 |
| Over £2,000,000 | Fee confirmed on application |
Account fee
Lloyds Bank may charge a fee that covers the cost of creating and managing your mortgage account. If charged, this fee is payable at £295.
CHAPS fee
Lloyds Bank may charge up to £50 for the electronic transfer of funds to your solicitor when your mortgage is arranged and provided for the purchase of your home.
Exit fee
Lloyds Bank may charge up to £50 as a mortgage exit fee which is payable when you transfer your mortgage to another lender, port your mortgage balance to a new property or when your mortgage term ends. However, Lloyds Bank does not charge the exit fee which it calls the closing administration charge for mortgages that were entered into on or after 1st August 2007.
Can I overpay my Lloyds Bank mortgage?
Yes, it is possible to make regular or one-off overpayments based on the terms of your Lloyds Bank mortgage deal. Where mortgage overpayments are allowed they will usually be limited to payments that are up to 10% of your mortgage balance each year. If you fall foul of the overpayment limits within your mortgage terms and conditions then you may be charged an early repayment charge which is usually charged at between 1% and 5% of your mortgage balance. If you are considering overpaying your mortgage, check out our article 'Overpaying vs Saving: 2023 insights'.
How does Lloyds Bank check my credit rating for a mortgage?
Lloyds Bank will check your credit report through credit reference agencies, Transunion, Experian and Equifax. The purpose of the credit check is to ensure that Lloyds Bank is able to assess the risk associated with lending a mortgage based on your previous financial activity. Credit reports highlight any late payments, missed payments as well as more serious financial misdemeanours such as county court judgements (CCJs) and bankruptcy.
It can be extremely helpful and sensible to request a copy of your credit file ahead of making a mortgage application so that you can check that there are no surprises within it, as this may delay or jeopardise the outcome of your mortgage application. A declined mortgage application could prevent you from being able to purchase your chosen property and may leave a negative mark on your credit file as a result, making it difficult to be accepted for further mortgage applications.
You can check your credit history by requesting a copy of your credit file and if there is more than one applicant, you should request the credit file for each. With ClearScore*, you can access your credit file that is held by the three main credit reference agencies, free of charge.
Does Lloyds Bank offer mortgages to people with bad credit?
It is unlikely that you will be accepted for a mortgage with Lloyds Bank if you have impaired credit. Applicants should aim to meet the following requirements:
- UK resident
- 18 years old or older
- Evidence of regular income
- Free of County Court Judgements (CCJs), Individual Voluntary Agreements (IVAs) or bankruptcies
Lloyds Bank is unlikely to offer a mortgage to a full-time student or if you are unemployed and cannot evidence regular income.
Lloyds Bank mortgage pros and cons
Pros
- 95% LTV mortgages are offered on purchase mortgages
- Hassle Free Mortgage range could reduce the initial mortgage costs
- Ability to make overpayments of up to 10% of mortgage balance each year on some products
- Large, trusted lender with a large market share in mortgage lending
Cons
- Tracker rate mortgages are only available for mortgage borrowing over £500,000
- You must transfer, port or borrow at least £25,000
- Mortgage applications from those with an impaired credit history are unlikely to be accepted
Lloyds Bank mortgage reviews
Lloyds Bank is ranked 10th out of 22 mortgage lenders that were analysed by the consumer review website, Which?. Lloyds Bank scored highest in the areas of 'Online access' and 'Customer service in general' with 4 out of 5 stars in these areas. In all other areas, including 'Value for money', 'Keeping you well informed', 'Clarity of mortgage statements' and 'Transparency of charges', Lloyds Bank scored 3 out of 5 stars giving it an overall 70% score.
Lloyds Bank scores only 1.7 out of 5 stars on independent customer review website, Trustpilot, giving it an overall rating of 'Bad'. That being said, Trustpilot does not separate customer reviews for purely mortgage customers and so this is a reflection of reviews across all of Lloyds Bank Group customers.
Summary
Lloyds Bank is part of a large banking group and as such, may offer security and brand attraction for some mortgage borrowers. The mortgage range offered by Lloyds Bank covers most borrowers' needs but does lack specialism for borrowers who may have specific needs such as deposit-free mortgages or mortgages for those with an impaired credit history.
It can be difficult to compare mortgage products beyond the interest rate and lender fee that is charged as you will need to ensure that you can qualify for the amount of mortgage you require. The best way to select the most suitable mortgage for your particular circumstances is to use the services of an independent mortgage broker. Mortgage brokers have a thorough knowledge of the mortgage market as well as knowledge of every lender's acceptance criteria. They can also access some mortgage deals that may only be available through a mortgage intermediary.
We have vetted the mortgage broking services provided by Habito*, one of the first specialist online mortgage brokers. Habito mortgage advisers have access to over 20,000 mortgage products across over 90 lenders in the market providing you with a greater opportunity for mortgage success. If you would prefer to engage with a local mortgage adviser, you can search for a mortgage broker near you using the professional online directory, VouchedFor*. The directory provides lists of mortgage professionals in your area alongside customer reviews and specialisms.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, VouchedFor, ClearScore