Lloyds is the largest mortgage lender in the UK, with an 18% market share in 2025. First-home buyers, mortgage switchers and current or potential landlords alike will find plenty of options at Lloyds, and the bank also ranks highly when it comes to customer satisfaction.
Fixed rate: Your interest rate will remain fixed for a set amount of time, providing certainty as far as the size of your mortgage payments.
Variable: This type of mortgage has an interest rate that can change over the mortgage’s term. Changes can be linked to the Bank of England (BoE) base rate, but other factors can also play a part.
Remortgages: You can switch your existing mortgage to Lloyds Bank via one of its remortgage products.
Interest-only: Your monthly repayments will only take mortgage interest into account. You’ll repay the capital at the end of the mortgage term.
Offset: You’ll use the funds in your Lloyds Bank savings account to offset the amount of your mortgage balance you pay interest on.
Buy-to-let: This mortgage allows you to borrow money to purchase an additional property and let it out to tenants.
Shared ownership: This mortgage allows you to buy a percentage of a property and pay rent on the remainder. You can then apply to buy additional percentages of the property as and when you can afford to do so.
Is Lloyds a good lender for first-time buyers?
Lloyds is well-equipped to support first-time buyers, with a range of mortgage schemes and products designed to lower barriers and help get people onto the property ladder. These include:
£5k Deposit mortgage
For first-time buyers who are able to meet other critera, but haven’t managed to save a chunky downpayment yet, Lloyds have introduced a mortgage which requires just a £5,000 deposit.
Its a five-year fixed rate product and is available on properites worth up to £300,000 – meaning the maximum LTV (loan-to-value) is 98%.
Lend a Hand mortgage
Another Lloyds mortgage product designed for first-time buyers is the ‘Lend a Hand’ mortgage. With this scheme, the buyer does not have to put down a deposit at all – instead a family member deposits 10% of the home’s purchase price. It’s placed in a 3-year fixed-term savings account for security and returned at the end of that period.
Its a three-year fixed rate product and the maximum loan available is £500,000.
First Time Buyer Boost
With Lloyds ‘First Time Buyer Boost’, aspiring homeowners can borrow up to 5.5x their yearly income, an increase in borrowing power compared to the standard options on the market. The total household income of the applicant or applicants must be more than £40,000.
Lloyds mortgages pros and cons
Pros
Range of specialist products for first-time buyers
Discounts for Club Lloyds customers
User-friendly app for managing mortgage
Overpayment flexibility
Largest mortgage lender in the UK
Lending up to 5.5x income
Cons
Fairly strict lending criteria
Limited options for bad credit
Minimum borrowing of £25,000
How to apply
You can apply online, by calling 0800 783 3534 or by visiting a local branch.
What information do I need to provide?
You’ll need to provide personal details and financial information. You might need to show payslips and/or bank statements to back this up. The lender will also want to see details of any existing debt you have.
Eligibility criteria
Usually, you must be 18 or over to apply and not more than 80 when your mortgage term comes to an end.
All applicants will be subject to an affordability test or credit check. Lloyds Bank has an affordability calculator on its website, which estimates how much you may be able to borrow.
Contact details
For general mortgage queries, call 0800 783 3534 or visit a local branch.
Lloyds mortgages customer reviews
In our 2024 customer satisfaction survey, Lloyds scored 4.1 out of 5 stars with 89% of its customers saying they’d recommend the brand to a friend.
Customers in our survey commented positively on Lloyds’ customer service.
Here’s some of the feedback we got from Lloyds mortgage customers:
“Never had an issue with them. They have always put my needs first as a customer.” “I find them easy to deal with and the application process was straightforward.” “Excellent advice and service.”
Bottom line
Lloyds is a big name in the market, offering a range of mortgage options, including specialist schemes for first-time buyers such as a £5,000 deposit mortgage and a mortgage that lets applicants borrow 5.5 times their income. It’s a great option for straightforward applications, but if you have a more complex situation or an adverse credit history, the bank’s mortgages might not be right for you.
Frequently asked questions
Yes, but an an early repayment charge (ERC) may apply in certain situations. Check your mortgage’s terms for more information. Lloyds will review and potentially adjust down your direct debit if you make enough overpayments.
Lloyds Bank is one of the few remaining mortgage lenders to offer a type of 100% mortgage (a mortgage with no deposit) – however, it involves a family member having the equivalent of 10% of the purchase price deposited in a linked fixed term savings account. On a selected range of Lloyds mortgages, there’s no charge for a property valuation and legal fees are waived. If you’re a Lloyds current account holder, you’re eligible for £200 after completing a mortgage.
Yes, once you’ve been a Lloyds mortgage customer for 12 months.
The minimum loan amount is £25,000, although Lloyds won’t lend against a property worth less than £40,000.
Sources
Representative example A mortgage of £230,537 payable over 23 years, initially on a fixed rate until 31/01/28 at 3.99% and then on a variable rate of 6.49% for the remaining 21 years would require 24 payments of £1,277.66 followed by 252 payments of £1,585.00. The total amount payable would be £430,099 made up of the loan amount plus interest (£199,547) and fees (£15). The overall cost for comparison is 6.1% APRC representative.
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Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife.
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