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Lloyds Bank mortgage review

We've combined expert analysis with customer feedback to help you decide whether to get a mortgage with Lloyds Bank.

In this article
Lloyds mortgage customer ratings What kinds of mortgages does Lloyds Bank 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 Bank mortgage eligibility How could a mortgage from Lloyds Bank help me onto the property ladder? What Lloyds Bank's mortgage customers say

Lloyds mortgage customer ratings

Mortgages
Lloyds Bank Review
Which? Customer Score
17th out of 25 mortgage lenders
65%
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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The table below shows how Lloyds Bank 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

-

Value for money

3 out of 5

Keeping you well informed

4 out of 5

Clarity of statements

-

Transparency of charges

3 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 2019 Which? survey of 3,574 members of the general public, in which 160 people told us they had their mortgage with Lloyds Bank.

What kinds of mortgages does Lloyds Bank offer?

When we checked in September 2019, there were 400 mortgages available from Lloyds Bank.

All of these were fixed-rate deals lasting two, five and 10 years. Some offered cashback of up to £450.

Does Lloyds Bank offer interest-only mortgages?

Yes, although your income must be at least £50,000 to be eligible.

The minimum income requirement is higher if you plan to repay your interest-only mortgage by selling the property, using a bonus or cash.

In these cases your income must be at least £100,000. If you're applying for a mortgage with another person, at least one of you must meet this requirement, or your combined income must be at least £150,000.

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 August 2019. They compiled a total of 208 ‘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 15, but Lloyds Bank didn’t feature at all. (Data source: Moneyfacts.)

 

 

Interest rates on Lloyds Bank mortgages

When we checked in September 2019, all the mortgages available from Lloyds Bank were fixed-rate mortgages. The average interest rate of a two-year fixed deal from Lloyds Bank was 2.60%, compared to the industry average of 2.77%.

If you already have a Lloyds Bank mortgage, and you also have a Club Lloyds current account, you can receive a 0.2% discount on the interest rate of a fixed-rate mortgage if you switch to a new deal with the bank. But it’s worth remembering there could be more competitive rates and current accounts 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%
£500,001 - £750,000 90%
£750,001 - £1m 85%
£1,000,001 - £2m 80%
£2,000,001 - £5m 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 Bank 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 above this limit.

Can I take a payment holiday?

If you’ve been a Lloyds Bank 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 Bank can be contacted on 0800 783 3534.

Its website is lloydsbank.com.

Lloyds Bank mortgage eligibility

Lloyds Bank says 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’.

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 Bank mortgages, except if you’re applying for an interest-only mortgage.

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

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.

How could a mortgage from Lloyds Bank help me onto the property ladder?

Lloyds Bank offers ‘Lend a Hand’ mortgages to first time buyers, who can borrow between 95% and 100% of a property’s purchase price.

You're considered a first-time buyer by Lloyds Bank if you’ve never bought a property or had a mortgage before. If you’re applying with another person, only one of you needs to be a first-time buyer in order to be eligible.

The 'Lend a Hand' mortgage is available if you’re buying a home in England or Wales, and want to borrow up to £500,000.

A family member puts 10% of the purchase price into a Lloyds Bank savings account, which acts as security for the mortgage. They won’t have access to the money for three years, but if you meet all the monthly payments during that time, your family member will get their savings back with interest too.

What Lloyds Bank's mortgage customers say

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