Worried about paying your mortgage? We have various ways that we can help you.
Thinking about buying your first property? Our range of first time buyer mortgage deals could help you get the keys to your new home.
We’re proud to support the Government’s mortgage guarantee scheme. You can apply for a first time buyer mortgage of up to 95% of the property’s value. Find out if you qualify.
No borrower deposit? Our Lend a Hand Mortgage could give a helpful lift to first time buyers and their families. Learn about the full Lend a Hand terms and conditions.
Make sure you’ve completed your Agreement in Principle with us. You might be able to continue your full mortgage application online, or you can speak to one of our mortgage and protection advisers from the comfort of your own home.
See if you qualify for our current cashback offers. You can qualify for one or both offers, if eligible.
You can apply for a first-time buyer mortgage as long as one of the buyers involved has not owned a house or other type of property before.
You’ll usually need to pay at least 5% of the property’s total value as an initial deposit. It’s worth remembering that if you can pay more as a deposit, you can usually get a better mortgage rate.
If you have a deposit between 5% and 10%, you may be able to apply for the Government’s mortgage guarantee scheme as part of your Lloyds Bank mortgage. This can give you a first-time buyer mortgage of up to 95%. The scheme is planned to run until 31 December 2023, though it can be closed sooner than this.
To apply, you’ll just need to follow the usual mortgage application process and make sure you meet the following requirements
Lending is subject to affordability assessments, personal circumstances such as employment and credit history and your mortgage application. You must also be at least 18 years old to apply.
A deposit should be at least 5% of the total value of your property. The only exception to this is a Lend a Hand mortgage, where a family member puts down 10% of your property purchase price.
It can help to pay a higher percentage upfront, to reduce the amount you borrow. This could make your interest rate and monthly mortgage repayments lower. So, you should try to save as much as you can towards a deposit on your first home. Look at our savings tips for advice on saving more, and our range of savings accounts.
There are other costs to consider as part of your first-time home purchase, such as legal fees, valuation fees and buildings insurance. So, make sure you have the right amount of money to cover all the costs that come with the home buying process.
How much you can borrow will depend on your personal circumstances. Your mortgage provider will take various factors into account when deciding how much to let you borrow. The total amount will depend on your credit history, employment status, income and outgoings, and any existing loans or debt.
You can use our mortgage calculator to get an idea of how much you could borrow. Or you can get a better indication with an Agreement in Principle (AIP) so you know which homes fall within your budget. 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. They do not affect your credit rating or ability to borrow from other lenders or Lloyds Bank in the future, even if you're declined an AIP this time.
An Agreement in Principle (AIP), also known as a Decision in Principle or Mortgage Promise, is a quote from a lender that gives you an idea of how much you could borrow before applying for a mortgage. It’s obligation-free and only involves a soft credit check. Some estate agents and sellers may want you to have an AIP in place before you view a house to prove you’re serious about buying.
It’s useful if you have a house you’d like to buy but want to gather quotes from lenders as to how much you could borrow.
The agreement is not a guarantee of any future mortgage deal. The amount offered is a quote and could change subject to your personal circumstances or changes in the market.
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. A mortgage offer also involves a full credit check.
Stamp Duty is a tax you may have to pay when purchasing a new home. It’s called the Land and Buildings Tax in Scotland and the Land Transaction Tax in Wales.
How much stamp duty you pay depends on the cost of the property you’re buying and whether you’re a first-time buyer or not.
When finding the perfect first home, consider the following
Once you’re ready to start viewing some houses, you can use our house viewing tips and checklist (PDF, 45KB) to make sure you ask all the essential questions. It can also help you keep track of the different ones you view and what you thought of them.
Yes, the minimum purchase price for properties we can lend on is £40,000. We can't provide a mortgage on properties that are valued or purchased – whichever is lower – at a price below £40,000.
The main factor to consider is whether you can afford to borrow the money you’re asking for. You’ll have to pay back the amount you borrow in monthly repayments with interest. So, make sure you can comfortably afford to keep up with repayments, alongside your other bills.
You can use our mortgage calculators to work out how much your monthly payments could be.
You may also want to consider the following mortgage features
Your mortgage adviser should talk you through these options and check your preferences before they make a mortgage recommendation.
You’ll need to find a conveyancer or solicitor during the mortgage application process. They can help cover the legal aspects of your property purchase, such as handling the contracts.
You will need to choose a conveyancer from our approved list – so check with us before you pick.
You can use the Lloyds Bank Conveyancing Service to compare quotes from our panel of up to 200 conveyancing professionals. You can review the quotes and choose a conveyancer based on what matters to you - the price, the firm's location or their service rating.
Get a quote for your legal costs
Mortgage loans are secured against your home. If you can’t keep up with your monthly repayments, you could lose your house. Make sure you can meet the monthly charges before agreeing to borrow any money, and get in touch as soon as possible if you get into any financial difficulties along the way.
It’s also worth noting that house prices can change. Your house could end up being worth more or less than the original purchase price and there is always a chance you could lose money.
If you sell your property for less than the original value and still have an existing mortgage, this is called negative equity. You’ll need to reimburse the bank or lender for the difference.
Get credit ready
Before applying for a mortgage, it’s good to understand that mortgage lenders will take into account your financial history and credit rating. This helps them to know if you’re likely to be able to make your mortgage repayments.
While each lender has its own criteria, here are some things you can do now to make sure your credit profile, and therefore your mortgage application, is in the best shape possible.
8 steps to help improve your credit rating
The mortgage completion process can’t usually be sped up and depends on various external factors – from your buyer’s chain to legal delays.
However, you can help the process by making sure you send all the right paperwork on time. Make sure all parties are working towards the same completion date and that you stay in close contact with your conveyancer and lender throughout.
Consider any other third parties you’ll need to contact and get quotes from (such as removal firms), and make sure they’re aware of the completion date you are aiming for.
You’ll need buildings insurance for your new house as part of your mortgage application. This protects the actual property, fixtures and fittings in case of events like a storm or flood.
You might also want to take out contents insurance to protect your belongings once you’ve moved into your new home.
Mortgage protection can help to cover mortgage costs in the event of your death or if you become too ill to work. You can speak to our Mortgage and Protection Advisers who can help you to find the right level of cover to suit your needs.
Any fees you need to pay will depend on the mortgage product you take out. There may be a product fee to pay, and there may also be early repayment fees for paying your mortgage off early. Product fees can usually be added to your mortgage repayments. Always check the details of your mortgage deal to find out what fees and charges there are.
There are other costs when buying a house, such as paying your solicitor.
Once your mortgage deal comes to an end, unless you take out a new deal, it will switch to a standard Lender Variable Rate.
You can choose to continue on the Lender Variable Rate, take out a new mortgage deal you’re your current lender or remortgage to a different lender.
It may be possible to switch your mortgage to another property, depending on the lender. This is called ‘porting’. Discuss with your lender if you have any plans to do this.
We lend you the money on the basis that you are using the property as your main residence.
If your circumstances change after you take the mortgage, and you want to let the property you must ask our permission.
We do not guarantee that we will allow you to let your property and you may have to transfer onto another product if we do allow this.
If you want to buy a property to let, take a look out our buy to let mortgages.