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Lloyds mortgage review

Our Lloyds mortgage review combines customer feedback with expert deal analysis to reveal whether the lender is worth considering next time you apply for a mortgage.

In this article
Lloyds mortgages customer ratings What kinds of mortgages does Lloyds offer? Does Lloyds Bank offer the best mortgage deals? Interest rates on Lloyds Bank mortgages How much could I borrow from Lloyds Bank?
Can I make overpayments? Can I take a payment holiday? How can I contact Lloyds Bank? Lloyds mortgage eligibility What Lloyds Bank's mortgage customers say

Lloyds mortgages customer ratings

Lloyds Bank Review
Which? Customer Score
17th out of 23 mortgage lenders
Which?'s rating for customer satisfaction, based on feedback from real customers. The score is made up of a customer's overall satisfaction with the brand, and how likely they are to recommend that brand.
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£1 for first month then £10.75/month unless cancelled

The table below shows how Lloyds performed in our latest mortgage satisfaction survey, from application process to value for money.

Customer rating for: Star rating
Customer service

3 out of 5

Application process

4 out of 5

Value for money

3 out of 5

Keeping you well informed

3 out of 5

Clarity of statements

3 out of 5

Transparency of charges

2 out of 5

Query and complaint handling

3 out of 5

Ability to overpay or underpay mortgage

3 out of 5

Online access

3 out of 5


Star ratings based on a June 2018 Which? survey of 3,560 members of the general public, in which 167 people told us they had their mortgage with Lloyds Bank.

What kinds of mortgages does Lloyds offer?

When we checked in July 2018, there were around 350 mortgages available from Lloyds.

All of these were fixed-rate deals lasting two or five years.

Does Lloyds Bank offer interest-only mortgages?

Yes, although you may need to have a minimum amount of income. This will depend on how you choose to repay the money you borrow at the end of the interest-only mortgage.

Does Lloyds Bank offer the best mortgage deals?

Which? analysis has found that Lloyds Bank offers far fewer cheap mortgages than the average lender.

In order to work this out, our experts analysed thousands of mortgages over a four-week period in June and July 2018. They compiled a total of 108 ‘top-10 cheapest deal’ tables based on a variety of borrowing scenarios, and counted how many times each lender featured in a table.

The average number of times a lender made it into a table was 14, but Lloyds Bank didn’t feature at all. (Data source: Moneyfacts.)


Interest rates on Lloyds Bank mortgages

When we asked Lloyds mortgage customers about the interest rate they were paying, half of the respondents told us they were paying between 2% and 2.99%.

When we checked in July 2018, all the mortgages available from Lloyds Bank were fixed-rate mortgages. The average interest rate of a two-year fixed deal from Lloyds was 3.11% - higher than the industry average of 2.81%.

If you have a Club Lloyds current account, you can receive a 0.2% discount on the interest rate of a fixed-rate mortgage. But it’s worth remembering that there could be more competitive rates available from other lenders.

How much could I borrow from Lloyds Bank?

Below we’ve outlined how much you could borrow from Lloyds Bank, in relation to the percentage of the property’s value.

Maximum loan amount Loan-to-value
£500,000 95%
£750,000 90%
£750,001 - £1,000,000 85%
£1,000,001 - £2,000,000 80%
£2,000,001 - £5,000,000 60%

Can I make overpayments?

You might have to pay an early repayment charge (ERC) if you make an overpayment during an ‘early repayment charge period’ of a Lloyds mortgage.

If an ‘early repayment charge concession’ applies when you make an overpayment - for example, if your mortgage allows you to overpay up to 10% of your balance each year - you’ll only pay an ERC on the amount that goes over this limit.

Can I take a payment holiday?

If you’ve been a Lloyds mortgage customer for at least 12 months, you might be eligible to apply for a ‘payment holiday’, where you can take a break from paying part, or all, of your monthly payment.

How can I contact Lloyds Bank?

Lloyds can be contacted on 0800 783 3534.

Its website is lloydsbank.com.

Lloyds mortgage eligibility

Lloyds says that it assesses each mortgage application individually and on its merits. However, you won’t be eligible for a mortgage from Lloyds Bank if you’re an ‘undischarged bankrupt’.

You’ll usually need a deposit of at least 5% of the property’s price or value to apply for a mortgage from Lloyds.

The mortgage must also usually end before you reach 80, which is a higher age than most other lenders.

Income and employment

There isn't a minimum income requirement for Lloyds mortgages. The only exception might be if you’re applying for an interest-only mortgage, depending on how you choose to repay the money you borrow at the end of the term.

If you’re in permanent employment, there’s no minimum amount of time you need to have worked for your employer before applying.

First-time buyers

Lloyds will only consider you to be a first-time buyer if you’ve never bought a property or had a mortgage before.

However, if you’re applying for a mortgage specifically for first-time buyers with another person, only one of you needs to be a first-time buyer in order to be eligible.

Leasehold properties

If you’re applying for a mortgage on a leasehold property, there must be at least 70 years left on the lease at the time you apply.

What Lloyds Bank's mortgage customers say