First time buyer mortgages
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.
Key steps to buying your first home.
You could lose your home if you don’t keep up your mortgage repayments
What happens after you’ve booked an appointment?
Once you’ve booked your mortgage appointment, here are some things that you'll want to think about:
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The average appointment time with your mortgage adviser is 2 hours. If you’re applying with someone else, make sure you’re both available because it’ll save time.
You can talk to us on a video call or over the phone on 0345 122 1337. (Monday to Friday 8am to 8pm, Saturday 9am to 4pm).
Find out about booking a branch appointment.
In preparation for your interview you’ll need to:
- Prepare the documents you’ll need such as payslips, bank statements, details of any financial commitments or bonus, and proof of your identity
- Bring details of the property you want to buy
- Prepare details of any existing home, life or critical illness insurance policies you have.
At the interview your mortgage adviser will:
- Complete background checks with a Credit Reference Agency
- Talk to you about valuation schemes
- Review your income and commitments
- Review your needs and circumstances and recommend our most suitable mortgage for you
- Give you an Illustration, which sets out the terms of the mortgage product and the total cost of the loan
- We’ll help you to identify your insurance and protection needs, such as home insurance and Life Cover.
In Scotland sellers must provide a Home Report which includes survey, Energy Performance Certificate and Property Questionnaire.
When all this is done and if everything is ok, we’ll write to make you a mortgage offer.
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Average time: 2-3 months
The legal side of buying or selling a property can be carried out by either a ‘solicitor’ or ‘licensed conveyancer’, for simplicity we refer to both of these as ‘conveyancer’. They will check who owns the property you want to buy, what’s included in the sale, and whether there are any clauses in the property’s legal title you or your lender need to be aware of. In Scotland your solicitor will also put in your offer to buy the property and negotiate for you.
You’ll need to:
- Get an estimate from them of costs, including any legal fees and VAT
- Ask your conveyancer to explain anything in your Mortgage Offer you don’t understand
- Ask your conveyancer to confirm any Stamp Duty Land Tax/Land and Buildings Transaction Tax (properties in Scotland) charge payable
- Tell your conveyancer if you have negotiated for any items such as curtains, carpets or kitchen appliances to be included in the sale
- Make sure you read any documents your conveyancer sends you very carefully.
Who’s involved:
- You and the seller, known as the vendor
- Seller’s estate agent
- Your conveyancer and the seller’s conveyancer
- Your lender.
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
Alternatively, you can appoint your own conveyancer, or your mortgage adviser can help arrange one during your mortgage appointment using the Lloyds Conveyancing Service.
All conveyancers instructed through the Lloyds Bank Conveyancing Service offer a 'no completion, no legal fee' guarantee, so you'll have nothing to pay for the legal work done if the purchase falls through. No legal fee is payable, however if the conveyancer has made payments to third parties on your behalf, such as fees for searches, these will still be payable.
Using the Lloyds Bank Conveyancing Service isn’t a requirement of applying for a mortgage with us and inclusion of a firm on our eConveyancing panel does not constitute a recommendation or endorsement of that firm by Lloyds Bank.
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Average time: Usually takes place in one day.
When you have read all the documents your conveyancer will ask you if you are happy to proceed with the purchase. They will then ask you to sign the contract. When everyone is ready contracts will be exchanged, usually by phone, to form a binding legal agreement to buy and sell.
You’ll need to:
- Make sure you have given your conveyancer the money they will need to pay as a deposit on exchange of contracts
- Sign the contract sent to you by your conveyancer (In Scotland, you exchange 'missives' which are letters of exchange with the sellers conveyancer)
- Give your conveyancer a date on which you wish to complete the process
- Make sure you have buildings insurance.
Who’s involved:
- Your conveyancer and the seller’s conveyancer
- Once you’ve exchanged contracts (In Scotland concluded missives) you can start to make arrangements for moving.
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After exchange your conveyancer will ask you to sign the mortgage deed and the document to transfer your new home to you. They will also apply to us for the mortgage money and ask you for any balance they need to complete your purchase.
Your conveyancer will call you to confirm the legal process is complete. You can then pick up the keys to your new home.
Congratulations! You now own your first home.
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Now you’ve got the keys to your new home, it’s a great time to think about making sure you’ve protected what matters.
Home insurance
You should already have buildings insurance, as this is a requirement of your mortgage, but it’s also a good idea to take out contents insurance to protect your household goods and personal belongings.Protecting your mortgage
You should also think about protecting your mortgage with our Life and Body Cover. This type of insurance can give you the peace of mind of knowing that you and your loved ones will be able to keep your home, even if something happens to you. It could help to pay off your mortgage in the event of your death, or if you become too ill to work.We have a range of options available to Lloyds Bank mortgage customers. Our Mortgage and Protection Advisers are on hand to discuss your needs and can help you to find the right level of cover for your needs.
You can find out more about protecting your mortgage, the cover we offer and how to get a personalised quote by visiting our Mortgage Protection page.
Who provides this policy?
This policy is arranged by Scottish Widows, who are a part of Lloyds Banking Group, like us.They’re our life insurance experts, and they’ve been protecting what matters most for over 200 years.
Common questions about buying your first home
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1. Can I apply for a first time buyer mortgage?
2. How much do I need to save for my deposit?
4. How does an Agreement in Principle differ from a mortgage offer?
6. What type of properties will you lend on?
7. What tips can you give me when looking for a property?
8. Is there a minimum purchase price?
11. What are the risks I should be aware of?
12. How do I improve my credit rating?
13. How can I speed up the mortgage completion process?
14. What insurance will I need?
15. Will I be charged any fees?
17. What happens at the end of my mortgage deal?
18. What happens if I want to move home in the middle of my mortgage deal?
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 put down some of your own money towards the cost. We call this a deposit. Your deposit should be at least 5% of the property’s value (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.
However, the more deposit you put down the less you have to borrow. This will ultimately save you money and you can often get a cheaper mortgage product.
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.
Need help saving for your deposit?
Have a look at our savings tips page and view our savings range to help you get started.
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 more 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-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 is stamp duty?
Stamp Duty is a tax you might have to pay when you buy a new home. Not everyone will have to pay Stamp Duty. To find out more, visit our Stamp Duty page.
6. 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.
7. What tips can you give me when looking for a property?
Looking for a property can be daunting – think about:
- What is important to you?
- Where do you want to live?
- How much space do you need?
- How much work are you willing to do on the property?
- These are all questions you need to consider when looking for a property.
Our house viewing checklist may be useful when you start to view properties. It will help you keep track of the various properties you view.
Also look at our house-viewing tips (PDF, 45KB).
9. What should I consider when applying for a mortgage?
Mortgages can last for a long time, so it is important you get the one that is right for you. You will need to think about such things as the type of loan, how long you want it for and what type of product you would like.
Methods of repayment - there are three different ways of repaying your mortgage. These are repayment, interest-only, and a combination of repayment and interest-only.
Mortgage terms - mortgage terms of up to 40 years are available. How long the mortgage lasts will affect your monthly payments and the total cost of the mortgage.
With a repayment mortgage, the longer the term, the lower the monthly payment. However, it will take you longer to pay off the loan so you will pay more interest. This means it will cost you more over the life of your mortgage.
With an interest-only mortgage, the length of the term makes no difference to the monthly payments because these are only paying off the interest charges and not the loan itself.
With an interest-only mortgage your mortgage term needs to match the time when you will have enough money in your repayment plan(s) to repay the loan.
Mortgage products - we may have different types of mortgage products with different types of interest rates. These change from time to time and we'll give you details of the current range when you apply.
Depending on the mortgage product you chose, you may have to pay an early repayment charge if you repay all or part of your mortgage early or we agree you can change products.
Product incentives - from time to time we may offer mortgage products that include an incentive. The interest rate for products with incentives may sometimes be slightly higher than for products without incentives.
So you will need to consider whether the incentive available at the start of the mortgage is more important to you than the slightly lower interest rate you may get during the product rate period without the incentive.
Your mortgage adviser will ask you about your preferences and discuss your needs and circumstances before deciding which mortgage to recommend to you.
Look at key features to help you understand more about our mortgages.
10. When will I need to get a conveyancer?
You will usually be asked for conveyancer details to take care of the important legal work when you apply for your mortgage.
You will need to choose a conveyancer from our approved list. So it is worth checking with us before you instruct a conveyancer.
11. What are the risks I should be aware of?
A mortgage has one key difference to other loans – it is secured against your home. If you cannot keep up with your monthly repayments or you get into financial difficulties you should contact us straight away so we can give you the help you need.
Remember, house prices can go down as well as up. If you owe more than the current value of your home, you will be in negative equity. If you need to move home and sell your property, and if its value has dropped below what you paid for it, there may be a shortfall between the amount you owe on your mortgage and the amount you get for the sale which you will need to repay.
12. How do I improve my credit rating?
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
- Register to vote
You need to be registered on the electoral roll so lenders can confirm your address and trace your credit history. If you’re not registered, the lender might not have enough information to progress your mortgage application. Contact your local authority to register or to check if you are registered.
- Be selective about your credit applications
If you make too many applications for credit, it can reflect badly on your mortgage application. The lender may think that you’re not creditworthy or that your finances are in a poor state and so, question your ability to make mortgage repayments.
- Review your credit history and score
Before starting your mortgage application, check your borrowing history using a credit reference agency. This allows you to see any inaccuracies in advance, so that mortgage lenders receive correct information on your ability to repay.
Also, check your credit score. If it’s low, see if there are any credit habits that you can improve on by following the below tips. Scoring bands can vary among different credit reference agencies.
- Calculate your debt-to-income ratio
This is the proportion of borrowing you have in relation to your money coming in. Mortgage lenders typically prefer a lower ratio, because it means you’re more likely to be able to afford your monthly mortgage repayments.
- Avoid any unnecessary borrowing
You can reduce your debt-to-income ratio by avoiding borrowing too much. Try not to take out new credit in the six months before applying for a mortgage as it could increase your debt-to-income ratio.
- But keep active credit accounts open
These show to lenders that you’re someone who’s able to consistently make repayments over a period of time. You may want to close inactive accounts as they show lenders that you have access to too much credit that you don’t need.
- Pay your bills on time
It’s always important to pay any bills on time, as any missed or late payments will be recorded on your credit history. So any recent mishaps would be visible to your prospective mortgage lender. This could make them doubt whether you’re able to repay a mortgage on time, or at all.
- Know your joint applicants’ credit profile
Mortgage lenders assess the creditworthiness of all of those named on the application. So, if you’re making a joint application, ask the other person to check their credit history and score in order. You can pass these tips onto them to help them too.
13. How can I speed up the mortgage completion process?
Return any requested documentation for your mortgage as soon as possible.
Work closely with your conveyancer to understand timings and next steps in the process – such as local authority search turnaround times.
Ensure all parties are working towards the same completion date and be aware of any chains you may be in which may impact this.
Consider any other third parties you’ll need to contact and obtain quotes from (e.g. removal firms), and ensure they are aware of the completion date you are aiming for.
14. What insurance will I need?
It is a requirement of your mortgage to have buildings insurance. This covers the bricks and mortar, fixtures and fittings. It's also a good idea to take out contents insurance as well - this protects all your possessions in your home, from furniture to jewellery.
It’s also important to think about what would happen to your mortgage in the event of your death, or if you are too ill to work. Our expert Mortgage and Protection Advisers can help you to find the right level of cover to protect your mortgage, should the worst happen.
15. Will I be charged any fees?
This will depend on the mortgage product, there may be a product fee to pay and early repayment charges if you repay early.
You will need to check our current rates for full details. Any product fees can usually be added on to your mortgage on completion.
There could be other charges and standard costs which you may have to pay during the course of setting up your mortgage.
You will be charged interest on any fees, charges and standard costs added to your loan.
There are other costs associated with buying a property and taking out a mortgage.
16. How do I plan my move?
Moving house can be stressful but it does not have to be. This useful checklist (PDF, 45KB) will make it easier to tackle the big move.
17. What happens at the end of my mortgage deal?
When you take out your mortgage, you arrange to have a fixed or variable rate product for a period of time.
At the end of this time, the product will end and your loan will usually be transferred to one of our lender variable rates. At this point, you may choose to move it to a new product for a further period of time.
19. How can I speed up the mortgage completion process?
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.