There are very few individuals across the world who can purchase a property straight from their savings. For the rest, some form of finance is required. The most popular type of finance for properties is mortgage finance. This is a long-term loan that usually spreads over a period of 20 years and allows customers to finance a home that fits within their affordability range. Lloyds Bank Mortgages promises customers a solution to their unique needs and this review investigates that claim.
We recently did a full review on the mortgage range at DBS Bank.
About Lloyds Bank
Lloyds Bank was founded a few centuries ago with the intention of providing banking services to those in the mercantile and manufacturing industries. Wildly successful, they were soon in demand in other parts of the market as well and before long became a full-fledged bank. Decades of expansion and growth followed, which is why the bank is currently considered one of the biggest in the world.
Discover a few unknown facts with the full review done on Lloyds Bank.
6 Mortgage Hacks That Will Save You A Ton of Money
You may not know this but a mortgage doesn’t have to be the financial noose it seems to be. It also doesn’t have to take as long to settle as we think it does. There are a few ways those interest payments can be reduced.
Choose To Pay Your Mortgage In Advance
This may mean paying an installment immediately when the loan is approved, but that very first installment can reduce a lot of interest. The interest saved with that very first advanced payment adds up over the years, especially on a 25 to 30-year mortgage.
Pick the Shortest Term You Can Afford
Shorter terms mean lower interest repayments over a period of time. This is ideal for those who are averse to credit in the first place. There is a minimum loan term banks offer on mortgages and shorter periods may incur penalties.
Beware the Fixer-Upper if Cashflow is Tight
A property in constant need of fixing up can become a financial burden when savings run out. This just means further mortgages which mean higher payments which may have been avoided with a different property.
Save Up a Deposit
This is one of the most important aspects of buying a property, as that initial deposit into the property has two benefits. Firstly, there is the obvious reduction in interest and capital which means lower payments over the long-term. Secondly, a deposit from the purchaser reduces the bank’s risk which could lead to lower interest rates.
Good Insulation From the Start
Possibly one of the most important aspects to take care of in a home is good insulation. When this is in place, homeowners will save a ton in heating and cooling costs.
Negotiate Attorney Fees
If the bank allows customers to choose the attorneys they wish to work with, there is the possibility to negotiate the fees. Furthermore, many banks are also in a position to discuss the fees with the attorneys on the customer’s behalf and may already have a product to this effect.
Lloyds Bank Mortgages Product Offerings
First-Time Home Buyers
This process takes customers through all they may need to know to purchase a property. Customers will have access to information such as the size of the deposit they may need and the various terms available.
- First-time home buyers will go through a process that checks their credibility.
- Customers have access to a mortgage calculator that gives them a rough idea of how much they qualify for.
- Furthermore, an agreement in principle allows customers to find a home without the hassles of not knowing whether they would qualify for the property.
- Also, the agreement in principle won’t affect the customer’s credit score even if declined.
- Once customers have found the property that suits them and their budgets best, the ball gets rolling for the final stages.
Remortgaging With Lloyds Bank
Customers who already have their mortgage finance with Lloyds Bank will find it fairly simple to remortgage their property, whether new or existing. The paperwork and details are far less complicated than with the first property. There are only two stages in the remortgage application process.
- Find a remortgage deal
- Start the full remortgage application
Customers who wish to find a different property and need finance to purchase same will have access to a straightforward and simple process.
- Customers check how much they qualify for and can safely afford.
- When they have an offer on their existing property, they need to discuss this with the mortgage consultant.
- Furthermore, customers are advised to view properties as soon as they know how much they qualify for to ensure a smooth process.
- Finally, the regular processing will take place which includes the transfer and registration.
Those who already have their mortgage with the bank can apply to have their mortgage switched to a different offer. They also have the option to apply for a further loan.
Buy To Let Mortgages
This is the ideal option for the property owner who is looking to invest in further properties and will rely on rental income. These loan types are specifically designed to aid the owner to get the most out of their finance.
- The finance is suitable to those who are at least 25 years old and won’t be over 75 at the end of their mortgage term.
- It is also suitable for those who have other properties.
- Furthermore, the property needs to be a in a good condition and not divided into separate units.
- Finally, the reason for the purchase needs to be for rental purposes.
Hassle Free Mortgages
Customers who wish to benefit from hundreds if not thousands in savings will have the opportunity with the Hassle Free Mortgages. With this loan type, customers will enjoy savings on their basic legal fees.
- The bank will provide a free standard valuation.
- Customers can make additional regular payments or a lump sum once a year of up to 10% of the amount owed on the 1st of January that year. Also, when customers keep to these limits they avoid the early repayment fee.
- Furthermore, there is no mortgage account fee.
- There is also a no-product-fee option available on selected mortgages.
- Finally, there are certain restrictions to this loan type.
Customers who prefer to invest on the markets instead of directly in property should take a look at the range on offer with Lloyds Bank.
What We Like About Lloyds Bank Mortgages
These guys are at the top of their game when it comes to mortgages. They have enough information available to prospective buyers in order to make the right decisions. The website is easy to navigate and customers are well aware of each division of mortgages without getting confused. There is also the option to step into the branch for further clarity when the process becomes unclear.
Various tools and calculators make it possible for potential homeowners to do their homework before they set out to find the property that suits them best. These tools are not the final answer, however, provide clear guidelines as to what can be expected.
The options are not just the straightforward options that every bank has. The Hassle Free option particularly stands out as one of those groundbreaking products that will make it tough for competitors to beat. This is a good thing for both the bank and the customers, as both have their interests taken care of.
Finally, The help section is clearly marked and customers have easy access to the fees and pricing. This is crucial for customers to make the right decisions and is a good sign in our books.
What We Don’t Like About Lloyds Bank Mortgages
This is one of the few times where we are unable to find fault with a mortgage line. Although banks such as Credit Agricole may have a far more extensive range of products, this is still a good mix of products that meet a number of needs.
Critical Reviews Rating Lloyds Bank Mortgages – 10 of 10
If there is one thing Lloyds Bank can pride themselves on, it’s the care and attention they put into their mortgages. From the very basic entry-level product to some interesting variations on mortgages, there is something for everyone. Purchasing a property is not always for the sole purpose of creating a home and Lloyds understands this. The Buy to Let option is ideal for those who require something geared towards investment.
Apart from the great range of mortgage options available, there is also the help and support provided by the bank to guide their customers into the right product. The website design is user-friendly and everything they could possibly want to know is right at their fingertips. From terms and conditions right through to the pricing and fees. Customers who find themselves in financial difficulty may also have some recourse and this information is available as well.
Finally, the mortgages are styled favorably and create a tough atmosphere for competitors to compete in thanks to the Hassle Free mortgage. Customers who are part of the Club Lloyds program may also have additional benefits when it comes to financing. This makes these packages all the more attractive. Lloyds Bank hit a home run with their mortgage range and with that, deserves a perfect score.
Saving up for a downpayment on a property can be a difficult task. The savings options offered by Lloyds Bank should make this easier.