The UK's largest lender
Lloyds lent over £42bn in 2018. That's 16% of all mortgage lending.
Borrow 5x your income
You could borrow up to this amount if you meet the lender's requirements.
Lloyds Banking Group is one of the UK’s largest mortgage lenders. In 2018 the group was the biggest mortgage lender totalling £42.5 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.
We’ve reviewed some of the UK’s top mortgage lenders and measured their service, application speed, and affordability.
In this review we'll cover:
Is Lloyds a good mortgage lender?
There are many ways to measure how good a lender is. We've chosen to focus on publicly available complaints data to estimate their quality of service.
We looked at Lloyds Banking Group’s customer complaints record between July and December 2018. 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 3,386 officially upheld complaints from Lloyds mortgage customers. (2) That’s around 0.2% of customers and is lower than the 0.3% 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.
If you decide to apply directly, a Lloyds mortgage adviser will be able to answer any questions you have about the application process, what’s involved, and how long it’s likely to take.
How much could I afford to borrow from Lloyds?
How much you can get for a mortgage will vary. But Lloyds could lend up to a maximum of 5 times income before tax, depending on your circumstances.
These details were last updated on 8th August 2019.
Lloyds' lowest mortgage rates
This information is currently unavailable for this lender.
Lloyds' best mortgage deals
This information is currently unavailable for this lender.
Frequently asked questions (FAQs)
Updated on 29th May 2019.
How long do Lloyds mortgage offers 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.
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.
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.
What will happen when my Lloyds 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.
Can I extend my Lloyds mortgage term?
It may be possible to extend your mortgage term with Lloyds but you’ll need to get their permission to do so.
Bear in mind that extending your mortgage term will increase the amount of interest Lloyds charge because the loan will take longer to repay.
Are Lloyds mortgages portable?
It might be possible to take your product with you when you move to a new mortgage. Your Lloyds Illustration and Offer letter will say if this is the case or not (you can only take your product rate to a new loan if your offer letter says so).
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.
Does Lloyds do Shared Ownership mortgages?
Lloyds Bank is participating in the Government's Help to Buy equity loan scheme. This initiative is designed to help buyers who have a minimum deposit of 5% to buy a new build home through a shared equity scheme.
The Government in England and Wales lends up to 40% of the value of the property in Greater London or up to 20% outside of Greater London (in Scotland the Government lends up to 15%).
However, other lenders within the Lloyds group - such as Halifax and TSB - do support the Shared Ownership scheme.
Does Lloyds Bank do commercial mortgages?
Yes. You can apply for a minimum of £25,001, choose a loan term from three to 25 years, and borrow up to 70% of the property’s value with a Lloyds commercial mortgage.
Can I manage my Lloyds mortgage online?
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.
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.
How do I contact Lloyds about a mortgage?
If you want to speak with someone at Lloyds to arrange a new mortgage, you can call them on 0800 783 3534. Lines are open 8am-8pm Mon-Fri and 9am-4pm on Saturdays.
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