Lloyds TSB offers customers mortgage interest rate reduction

Lloyds TSB has launched a new offering which gives its current account customers a 0.2% reduction on its mortgage interest rates. This is available to any Lloyds TSB current account customers who deposit £1,000 or more each month and are taking out a new Lloyds TSB mortgage.

Lloyds TSB current account customers who take advantage of this offer could save hundreds of pounds per year on their mortgage.

In the first year alone, on a 3.99% fixed rate repayment mortgage of £150,000, reduced to 3.79%, Lloyds TSB current account customers could save £197, and within two years the customer could therefore save £395.

On a 3.99% interest only payment mortgage of £150,000, reduced to 3.79%, a Lloyds TSB current account customer could save £301 in the first year, and within two years the customer could save £603.

This benefit complements Lloyds TSB's wide range of flexible features for its mortgage customers - homemovers, remortgage and first time buyers - enabling borrowers different options that will ensure their mortgage supports them during any potential change or transition periods.

Stephen Noakes, head of mortgages at Lloyds TSB, said: "Rewarding our current account customers by helping to reduce the costs of their mortgage payments is just one of the ways LloydsTSB will continue to deliver the best value mortgages and develop deeper relationships with our customers in these still challenging times."

"Increasingly, we have also heard from our customers of their desire for added flexibility in mortgage products to help future-proofing mortgage commitments, which can be adapted and suited to their every changing need. Our recent commitments on extending the ability to overpay is just one component of our flexible benefits."