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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.
You've had an offer accepted on a property
Make sure you’ve completed your Agreement in Principle with us. You might be able to continue your full mortgage application online, or you can speak to one of our mortgage and protection advisers from the comfort of your own home.
Current special offers
See if you could qualify for our current offers. You can qualify for one or both offers, if eligible.
What happens next?
Once you’ve booked your mortgage appointment, here are some things that you'll want to think about:
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Applying online
You can continue your full mortgage application online. We’ll guide you through the rest of the process, but if you need help, you can speak to one of our expert mortgage advisers by phone or through our mortgage video service.
Speak to us
You can speak to one of our mortgage advisers by phone, video call or in person. Appointments with an adviser will take about 2 hours. If you’re applying for a mortgage with another person, it’s helpful if they’re at the appointment as well.
You can speak to us over the phone or by video call, please call us.
Or you can book a branch appointment.
What you’ll need to bring to the appointment
- Relevant documents, such as proof of identity, bank statements, payslips, and details of any financial commitments.
- Information about the property you want to buy.
- Details of any existing home, life or critical illness insurance policies you have.
At the appointment, the mortgage adviser will:
- look at your income and spending commitments
- recommend the most suitable mortgage for you based on your needs and commitments
- talk to you about valuation schemes
- complete background checks with a credit reference agency
- explain the terms and total cost of the mortgage
- talk to you about your insurance needs, such such as home insurance and Life Cover.
Sellers in Scotland must provide a Home Report, which includes a survey, Energy Performance Certificate and Property Questionnaire.
If we’re satisfied with your application, we’ll then write to you with a mortgage offer.
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Use Your Mortgage Tracker to stay up to date with the latest developments on your mortgage application.
To check on the progress, you’ll need your:
- unique mortgage roll number
- mobile phone number, so we can text you a one-time logon code.
You can log on anytime, but personalised help from our expert team is available online from Monday to Saturday 6am - 10pm and Sunday 6am - 9pm.
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Average time: 2-3 months
The legal side of a property sale can be handled by a solicitor or licensed conveyancer. They’ll start by checking:
- who the legal owner is of the property you want to buy
- what’s included in the sale aside from the property, including outhouses, sheds, garden and driveway space
- any clauses in the property contract that you need to be aware of, such as planning permission.
For customers in Scotland, your solicitor will put in your offer too, and handle negotiations on your behalf.
What you’ll need to do
- Get an estimate of costs, including legal fees and tax.
- Ask your conveyancer to explain any terms, clauses or details you don’t understand.
- Confirm any Stamp Duty Land Tax/Lands and Buildings Transaction Tax (Scotland only) fees included in the sale.
- Make sure you are happy with any documents sent by your solicitor.
Need help? Use the Lloyds Bank Conveyancing Service to get quotes for solicitors local to you.
You can always appoint your own conveyancer, or your mortgage adviser can help direct you to a reputable solicitor to assist with the legal side of your property sale.
Who’s involved in the conveyancing process
- You and the seller, often referred to as the vendor.
- Your seller’s estate agent.
- The conveyancers for both parties.
- Your lender.
All conveyancers used through the Lloyds Bank Conveyancing Service offer a 'no completion, no legal fee' guarantee. This means you won’t pay any legal costs if the purchase falls through. However, if the conveyancer has paid 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. Inclusion of a firm on our eConveyancing panel is not a recommendation or endorsement of that firm by Lloyds Bank.
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Average time: 2-3 months
This stage can take up to 3 months from the time you appoint a conveyancer. In that time, your solicitor will work with the seller’s solicitor to finalise the sale contract. The actual exchange of contracts, however, usually takes place in one day.
Once everything has been agreed, both solicitors will make sure they have an agreement from you – as the buyer – and the seller. Make sure you’re happy with everything in the contract before you sign anything or make an agreement.
During this phase, you’ll have to:
- pay an initial deposit to your conveyancer
- sign the contract from your conveyancer, agreeing to their terms of service
- set a date by which you want to move in
- set up buildings insurance on your new home.
Once you’re happy, the contracts will be signed, and you can officially exchange contracts (or missives, if you’re in Scotland). You can then start planning for your move in day.
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After you’ve exchanged contracts, you can sign the mortgage deed with your conveyancer. This document transfers ownership of the property to you.
Your mortgage agreement will then start, and you’ll begin repaying your monthly fees to your lender. Any outstanding charges or money owed for the property, or the solicitor services, will also be due.
Once all the fees have been paid and the money due has changed hands, the process is complete. All that’s left is picking up the keys and moving in.
A letter will be sent to your new address to confirm the commencement of your mortgage arrangement.
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Now you’re moving into your new home, it’s time to think about protecting it and your belongings from any mishaps and accidents.
Home Insurance
You’re legally obligated to purchase buildings insurance when you buy your home, but that doesn’t always cover the contents inside it. You may want to protect furniture, clothes, electronics and more with contents insurance.
This can protect your belongings from accidents, breakages and theft.
Protect your mortgage
Life and Body Cover can protect you and your family from losing your home if something happens to you that means you can’t pay your mortgage payments. It can help pay off your mortgage in the event of your death or if long-term illness means you can’t work.
With a Lloyds Bank mortgage, you can get access to a range of mortgage protection plans and options.
Get a mortgage protection quote
What you need to know
Our protection plans are provided by Scottish Widows, which, like us, is part of the Lloyds Banking Group. Scottish Widows protection products have no cash-in value at any time and cover will stop if you don't pay your premiums. If the policy amount has not been paid out by the end of the selected term, the policy will end and you’ll get nothing back. You must be a UK resident aged between 18 and 59 to apply.
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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 in the middle of my mortgage deal?
1. Can I apply for a first time buyer mortgage?
You can apply for a first-time buyer mortgage as long as one of the buyers involved has not owned a house or other type of property before.
You’ll usually need to pay at least 5% of the property’s total value as an initial deposit. It’s worth remembering that if you can pay more as a deposit, you can usually get a better mortgage rate.
If you have a deposit between 5% and 10%, you may be able to apply for the Government’s mortgage guarantee scheme as part of your Lloyds Bank mortgage. This can give you a first-time buyer mortgage of up to 95%. The scheme is planned to run until 30 June 2025, though it can be closed sooner than this.
To apply, you’ll just need to follow the usual mortgage application process and make sure you meet the following requirements
- You’re a first-time buyer.
- You want to borrow less than £570,000.
- You’re not buying a new build flat.
- The property you’re buying doesn’t fall under shared ownership, shared equity, right to buy or buy to let.
- You want to get a repayment mortgage, rather than interest-only.
Lending is subject to affordability assessments, personal circumstances such as employment and credit history and your mortgage application. You must also be at least 18 years old to apply. Learn more about how 95% mortgages work.
2. How much do I need to save for my deposit?
A deposit should be at least 5% of the total value of your property. The only exception to this is a Lend a Hand mortgage, where a family member puts down 10% of your property purchase price.
It can help to pay a higher percentage upfront, to reduce the amount you borrow. This could make your interest rate and monthly mortgage repayments lower. So, you should try to save as much as you can towards a deposit on your first home. Look at our savings tips for advice on saving more, and our range of savings accounts.
There are other costs to consider as part of your first-time home purchase, such as legal fees, valuation fees and buildings insurance. So, make sure you have the right amount of money to cover all the costs that come with the home buying process.
3. How much could I borrow?
How much you can borrow will depend on your personal circumstances. Your mortgage provider will take various factors into account when deciding how much to let you borrow. The total amount will depend on your credit history, employment status, income and outgoings, and any existing loans or debt. We accept US dollars, euros, Australian dollars, Indian rupees and Swiss francs when calculating your mortgage affordability.
You can use our mortgage calculator to get an idea of how much you could borrow. Or you can get a better indication with an Agreement in Principle (AIP) so you know which homes fall within your budget. 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. They do not affect your credit rating or ability to borrow from other lenders or Lloyds Bank in the future, even if you're declined an AIP this time.
4. How does an Agreement in Principle differ from a mortgage offer?
An Agreement in Principle (AIP), also known as a Decision in Principle or Mortgage Promise, is a quote from a lender that gives you an idea of how much you could borrow before applying for a mortgage. It’s obligation-free and only involves a soft credit check. Some estate agents and sellers may want you to have an AIP in place before you view a house to prove you’re serious about buying.
It’s useful if you have a house you’d like to buy but want to gather quotes from lenders as to how much you could borrow.
The agreement is not a guarantee of any future mortgage deal. The amount offered is a quote and could change subject to your personal circumstances or changes in the market.
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. A mortgage offer also involves a full credit check.
5. What is stamp duty?
Stamp Duty is a tax you may have to pay when purchasing a new home. It’s called the Land and Buildings Tax in Scotland and the Land Transaction Tax in Wales.
How much stamp duty you pay depends on the cost of the property you’re buying and whether you’re a first-time buyer or not.
6. What type of properties will you lend on?
To get a mortgage agreement with us, your property must be in the UK and must be your main residential home.
There are other mortgage options for different types of property, such as buy to let and shared equity.
7. What tips can you give me when looking for a property?
When finding the perfect first home, consider the following
- What are your must-haves for a home?
- Where would you like to live?
- How many bedrooms and bathrooms would you like?
- Do you want a house that’s ready to move into – or would you prefer a project?
- Would you like an outdoor space?
Once you’re ready to start viewing some houses, you can use our house viewing tips and checklist (PDF, 45KB) to make sure you ask all the essential questions. It can also help you keep track of the different ones you view and what you thought of them.
9. What should I consider when applying for a mortgage?
The main factor to consider is whether you can afford to borrow the money you’re asking for. You’ll have to pay back the amount you borrow in monthly repayments with interest. So, make sure you can comfortably afford to keep up with repayments, alongside your other bills.
You can use our mortgage calculators to work out how much your monthly payments could be.
You may also want to consider the following mortgage features
- The type of loan and how you pay it back – repayment, interest-only or a combination of the two.
- The mortgage term – how long you’ll take to pay off your mortgage, which can impact your monthly payments. It’s usually available up to 40 years.
- Any product incentives available – such as cashback or free conveyancing.
- Interest rates available – these can vary from product to product and may be higher for mortgages that come with an incentive.
Your mortgage adviser should talk you through these options and check your preferences before they make a mortgage recommendation.
10. When will I need to get a conveyancer?
You’ll need to find a conveyancer or solicitor during the mortgage application process. They can help cover the legal aspects of your property purchase, such as handling the contracts.
You will need to choose a conveyancer from our approved list – so check with us before you pick.
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 costs11. What are the risks I should be aware of?
Mortgage loans are secured against your home. If you can’t keep up with your monthly repayments, you could lose your house. Make sure you can meet the monthly charges before agreeing to borrow any money, and get in touch as soon as possible if you get into any financial difficulties along the way.
It’s also worth noting that house prices can change. Your house could end up being worth more or less than the original purchase price and there is always a chance you could lose money.
If you sell your property for less than the original value and still have an existing mortgage, this is called negative equity. You’ll need to reimburse the bank or lender for the difference.
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?
The mortgage completion process can’t usually be sped up and depends on various external factors – from your buyer’s chain to legal delays.
However, you can help the process by making sure you send all the right paperwork on time. Make sure all parties are working towards the same completion date and that you stay in close contact with your conveyancer and lender throughout.
Consider any other third parties you’ll need to contact and get quotes from (such as removal firms), and make sure they’re aware of the completion date you are aiming for.
14. What insurance will I need?
You’ll need buildings insurance for your new house as part of your mortgage application. This protects the actual property, fixtures and fittings in case of events like a storm or flood.
You might also want to take out contents insurance to protect your belongings once you’ve moved into your new home.
Mortgage protection can help to cover mortgage costs in the event of your death or if you become too ill to work. You can speak to our Mortgage and Protection Advisers who can help you to find the right level of cover to suit your needs.
15. Will I be charged any fees?
Any fees you need to pay will depend on the mortgage product you take out. There may be a product fee to pay, and there may also be early repayment fees for paying your mortgage off early. Product fees can usually be added to your mortgage repayments. Always check the details of your mortgage deal to find out what fees and charges there are.
There are other costs when buying a house, such as paying your solicitor.
16. How do I plan my move?
Moving house can be stressful but it doesn't 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?
Once your mortgage deal comes to an end, unless you take out a new deal, it will switch to a standard Lender Variable Rate.
You can choose to continue on the Lender Variable Rate, take out a new mortgage deal you’re your current lender or remortgage to a different lender.
18. What happens if I want to move in the middle of my mortgage deal?
It may be possible to switch your mortgage to another property, depending on the lender. This is called ‘porting’. Discuss with your lender if you have any plans to do this.
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.
If you want to buy a property to let, take a look out our buy to let mortgages.