Lloyds TSB launches mortgage deals to ease payment shock

After five consecutive Bank of England Base Rate rises, thousands of homeowners face higher mortgage payments as their fixed rate deals mature.

To help ease the shock of remortgaging, Lloyds TSB is launching a range of stepped rate products. Rates start as low as 4.79 per cent to cushion the impact of higher payments for customers.

Alison Burns, Lloyds TSB's director of network mortgage sales commented, "Two years ago, fixed rate mortgage deals as low as 4.39% were on offer but now these deals are coming to an end. After five consecutive base rate rises, homeowners may now face paying hundreds of pounds a month more when they remortgage. We have launched this new stepped rate range to help reduce the impact of payment shock on customers budgets and also to help ease the transition into today's higher interest rates."