Home mover - FAQs
Use our frequently asked questions to find out what you need to know about moving home.
Things to know
- 1. Jump to How much of a deposit do I need?
- 2. Jump to Can I move home during my mortgage deal?
- 3. Jump to What are the costs involved with moving home?
- 4. Jump to Will I be charged any fees?
- 5. Jump to How much could I borrow?
- 6. Jump to What type of properties will you lend on?
- 7. Jump to Is there a minimum purchase price?
- 8. Jump to What are the risks I should be aware of?
- 9. Jump to What should I consider when applying for a mortgage?
- 10. Jump to How can I speed up the mortgage completion process?
- 11. Jump to What insurance will I need?
- 12. Jump to How do I plan my move?
- 13. Jump to When will I need to get a conveyancer?
- 14. Jump to What happens at the end of my mortgage deal?
- 15. Jump to Can I let my property?
Things to know
How much of a deposit do I need?
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. If you can put down 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 The scheme is expected to accept applications until 31 December 2022, however, it may be withdrawn earlier.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 home mover
- 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.Back to top
Can I move home during my mortgage deal?
If you currently have your mortgage with us it's sometimes possible to take a product rate and any early repayment charges with you to a new mortgage - we sometimes call this 'porting‘.
Your Mortgage Illustration and offer letter will say if any of your product rates can be taken to a new mortgage, also your Mortgage Adviser will be able to advise you when you have your appointment.Back to top
What are the costs involved with moving home?
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.
There are often unexpected costs too in buying a property, so it's a good idea to have a reserve fund to cover them.Back to top
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.Back to top
How much could I borrow?
An Agreement in Principle (AIP) provides you with a personalised commitment-free mortgage promise 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.Back to top
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.Back to top
Is there a minimum purchase price?
While we will consider many types of property, we have a responsibility to ensure that a property is suitable security for a mortgage.
As a result, we will not lend against properties where the lower of the valuation or purchase price is below £40,000.Back to top
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.Back to top
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.Back to top
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.Back to top
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.Back to top
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.Back to top
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.Back to top
Can I let my property?
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.Back to top
You could lose your home if you don’t keep up your mortgage repayments
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
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