If you have applied for a mortgage to buy a property or are switching your mortgage from another lender to Lloyds TSB (remortgaging), here’s what to expect:
If your mortgage is approved, we’ll send you a mortgage pack
Complete and return the application in the pack and we’ll start processing it
Property valuation, if you’re buying a property
About your first mortgage payment
A decision in principle
Whether you started your application online or spoke to one of our mortgage experts, you’ll get a decision in principle over the phone. If your application is approved in principle, we’ll send you a mortgage pack, including an application form. The decision in principle is an initial assessment of whether we’re likely to able to lend you the amount you want based on the information you’ve given us. As you’d expect, we’ll do a full assessment and give you a final decision once we’ve received your application.
If approved, your mortgage pack will be sent to you for completion
Shortly after you’ve had a decision in principle, you’ll receive your mortgage pack containing your quote, part-completed application form and a checklist of things to do, plus information you need to return with the application to us.
A mortgage expert will call you within four days to check that you received your pack and answer any queries you might have.
Once your application is complete and returned we’ll start processing
Once we have all the information we requested on the checklist we’ll start to process your mortgage. If you gave us a mobile number, we’ll text you a ‘Welcome’ message.
As part of the process we’ll:
Valuation, if buying a property
We’ll make arrangements for a valuation of the property you are planning to buy. The valuer will contact the person(s) who has access to the property to make an appointment to carry out the valuation. If you gave us a mobile number, you’ll receive a text message confirming that a formal mortgage offer will be sent to you in the next couple of days.
The final go-ahead
Once all your documentation and the valuation report is in place, we’ll make the final lending decision for your mortgage. If it’s approved, we’ll then send copies of the mortgage loan agreement form to you and your solicitor. If you provided a mobile number, you’ll receive a text message confirming that we’ve sent you the mortgage offer.
Your mortgage
Your solicitor will send us the signed mortgage loan agreement, and any other necessary forms, confirming the date you’d like your mortgage to start and the money to be released. Again, if you provided a mobile number, you’ll receive a final text message confirming the money has been sent and giving you a customer service number to use for any future contact with us.
About your first mortgage payment
As one of our mortgage experts will have explained, your first mortgage payment will be for your first full month’s payment, plus it will include what is known as ‘initial interest’. This is the interest for the month in which your mortgage starts, which often won’t be a full month – so the initial interest is the interest due from the date your mortgage starts up to the end of that opening month. Subsequent payments will then revert to the normal payment figure of one month’s interest.
