Lloyds mortgage review

1stThe UK’s largest mortgage lender.

Lloyds Banking Group is one of the UK’s largest mortgage lenders, in 2017 the group was the biggest mortgage lender totalling £41 billion with a market share of 16%.1

Founded in 1765 in Birmingham, Lloyds is part of the Lloyds Banking Group which includes Bank of Scotland and Halifax.

Lloyds mortgage deals are available to a wide range of people, but they generally won’t lend to you if you have particularly bad credit.

We’ve reviewed some of the UK’s top mortgage lenders and measured their service, application speed, and affordability.

See how Lloyds compares to other mortgage lenders:

Is Lloyds a good mortgage lender?

3,907Upheld complaints received by the financial regulator.

We looked at Lloyds Banking Group’s customer complaints record between July and December 2017. Because of the way complaints are officially recorded, this includes customers of Bank of Scotland and Halifax which are part of the group. During this period the Financial Conduct Authority (the financial regulator) received 3,907 officially upheld complaints from Lloyds mortgage customers.2 That’s around 0.2% of customers and is lower than the 0.4% average across major lenders.*

*The number of customers served by this lender isn’t publicly available so we’ve estimated this figure based on market share and average house price in the UK.

How long does a Lloyds mortgage application take?

We don’t currently collect data on the average speed it takes for Lloyds to process mortgage applications because their products can only be attained by applying directly.

The average time it takes for other lenders to process a Trussle customer’s application is 18 days.*

*The number of customers served by this lender isn’t publicly available so we’ve estimated this figure based on market share and average house price in the UK.

How much could I afford to borrow from Barclays?

Lloyds calculates your maximum borrowing amount based on your annual income, personal circumstances, and the property you're buying. We don’t currently have data on the maximum income multiple they’ll lend.

Lloyds mortgage rates

This information is currently unavailable for this lender.

Lloyds mortgage deals

This information is currently unavailable for this lender.

Frequently asked questions about Lloyds mortgages

This information was last updated on 16th July 2018.

Can I make overpayments on my Lloyds Bank mortgage?

Yes, Lloyds will allow you to either make regular overpayments — by increasing the amount you pay each month — or to make a one-off overpayment in the form of a lump sum. Which option you choose will depend on your circumstances.

To increase the amount you’re paying each month, just contact Lloyds and amend your Direct Debit. Alternatively, you can set up a new standing order to cover the additional payments.

You can make a lump sum overpayment via a bank transfer, or by using your debit card. However, Lloyds will only accept overpayments of up to £30,000 from debit cards.

When will I make my first mortgage payment to Lloyds Bank?

Lloyds don’t have a fixed date on which you’ll make your first payment. Instead, they’ll send you a letter once your property purchase has been confirmed, containing all the details of your payment plan. This will include how much you’ll need to pay, and when you’ll need to pay it.

How long will my Lloyds mortgage offer last?

Different mortgage offers from Lloyds could last different lengths of time, depending on your circumstances. To find out how long your mortgage offer will last, take a look at the terms of the offer when you receive it. That way you’ll know exactly how long you have to complete the purchase of your chosen property.

How long will it take for Lloyds to release my funds?

Your conveyancer will request your mortgage funds after you’ve exchanged on the property, and ask you to transfer any additional funds you’ve agreed to pay.

At this point, you’ll also sign the mortgage deed and a document transferring ownership of the home to you. This is also when you’ll confirm your completion day.

Can I use internet banking to manage my Lloyds mortgage?

Yes. With Lloyds, you’ll be able to view your monthly payments, interest rate, and your current mortgage balance online. You can also request a printed mortgage statement or certificate of interest, and amend your monthly payments by adjusting your Direct Debit.

Before you can use internet banking with Lloyds, you’ll have to register. It should only take around five minutes.

What will happen when my fixed rate mortgage ends?

In most cases, you’ll be transferred onto one of Lloyds Bank’s variable rate mortgages. This means your monthly payments are likely to change depending on the underlying mortgage market — unlike a fixed rate mortgage.

You’ll have the option to move if you’re not happy with your new variable rate mortgage. So it’s a good idea to do your research ahead of time to find out exactly what you’ll be expected to pay and whether you might find a more suitable deal with Lloyds or another lender.

Will I need life insurance if I choose a Lloyds mortgage?

There’s no need to take out life insurance in order to get a mortgage from Lloyds — whether you choose to take life cover or critical illness cover is entirely up to you.

You will, however, be required to have buildings insurance. Buildings insurance covers the permanent fixtures in your home, including the bricks and mortar. Lloyds recommends that you take out contents insurance as well, to protect your personal possessions within your home, but it isn’t a requirement. You’ll often find both types covered within a single policy.

Did Lloyds sell PPI in the past?

Yes, Lloyds mortgages often included Payment Protection Insurance, or PPI. After concerns over the mis-selling of PPI, though, there’s now much more clarity within your application process. Unless you request PPI, it won’t be added.

Whether you want PPI is entirely up to you. If you decide to buy it, you’ll have protection if an accident, sickness, or unemployment means you can’t make your mortgage payments.