1. Can I apply for a First Time Buyer mortgage?
As long as one person applying has never owned a property before, you can apply for a First Time Buyer mortgage with Lloyds Bank.
You’ll need a deposit of at least 5% of the property’s value, but if you can afford more than 5%, you can often get a lower initial interest rate.
We’re supporting the Government’s mortgage guarantee scheme, if you only have a deposit of at least 5% but less than 10%. The scheme is expected to accept applications until 31 December 2022, however, it may be withdrawn earlier. You can apply for a mortgage under the scheme by following our usual application process.
If you’re planning to put down a deposit between 5% and 10%, to qualify you’ll need to be:
- A first-time buyer
- Thinking about borrowing less than £570,000
- Buying a property which isn’t a new build
- Buying a property which isn’t Shared Ownership, Shared Equity, Right to Buy or buy to let
- Thinking about getting a repayment mortgage and not interest only.
Lending is subject to an affordability assessment, credit score and a full mortgage application.
Use our mortgage calculator to see how much you could borrow and what your monthly payments might be. Or, to get a better indication apply for an Agreement in Principle.
You must be at least 18 years old to apply for a mortgage, and your mortgage must usually end before you reach 80 years of age. If your mortgage term extends past your 70th birthday or when you plan to retire - whichever happens sooner - we'll look at your retirement or employment income to make sure that you can afford the monthly payments. If you’re taking out a joint mortgage, we take the age of the oldest person into account.
2. How much do I need to save for my deposit?
We will only lend you a percentage of what the property is worth, so you will need to use some of your own money. We call this a deposit. The most we can lend you is 95% of the property’s value, so you’ll need to put down a 5% deposit (unless you’re applying for our Lend a Hand mortgage). If you can put down more than 5%, you can often get a lower initial interest rate.
As well as your deposit, there are other costs associated with buying a property and taking out a mortgage.
Typical ones that apply to most buyers include conveyancing fees, Stamp Duty Land Tax/Land and Buildings Transaction Tax (properties in Scotland), valuation fees and Land Registry fees.
Use our mortgage calculators to see how much you could borrow, and what your monthly payments might be.
Lend a Hand Mortgages
With Lend a Hand, your mortgage payments stay the same for 3 years, and you don’t need to save for your own deposit. Instead, a family member can put down 10% of the cost of your home, up to £500,000, which they’ll get back plus interest after 3 years (subject to conditions). Learn about the full Lend a Hand details and conditions.
3. How much could I borrow?
An Agreement in Principle (AIP) provides you with a personalised commitment-a free indication of how much we might be able to lend you. If you're buying a home it'll give you a clear idea of which properties you could afford. Estate agents will often ask to see an AIP to show that you are a committed buyer.
We do what's called a soft credit check as part of the process. Soft credit checks can only be seen by yourself on your credit report and do not affect your credit rating or ability to borrow from other lenders or ourselves in the future, even if you're declined an AIP on this occasion.
4. How does an Agreement in Principle differ from a mortgage offer?
An Agreement in Principle, also known as a 'Decision in Principle' or 'Mortgage Promise', is useful if you haven’t found a property you want to buy but would like to know how much you could borrow.
All we need is a few personal details about you and anyone else who will be named on the mortgage. Then we’ll contact a credit reference agency for a credit search and give you a credit score. If you reach our pass mark, we’ll give you a certificate that you can use to show a seller you can get a loan.
A mortgage offer is issued by a lender once your application has been received and necessary checks, such as a valuation and confirmation of your details, have been carried out. It sets out the terms under which the lender is prepared to offer you a loan.
5. What type of properties will you lend on?
The property you buy must be located within the UK and loans can only be used to buy your main residential home or for purposes relating to this home.
We will consider lending you money to buy different types of property. We may ask you to provide a bigger deposit on some types of property than others.
Any loan we make is subject to a property valuation.
Read more frequently asked questions.