0.2% mortgage interest rate reduction for Lloyds TSB current account holders

Lloyds TSB has launched a new offer that gives its customers who hold a current account with the provider a 0.2% reduction on its mortgage interest rates.

However, this offer is only available to Lloyds TSB current account holders who deposit £1,000 or more each month and are taking out a new Lloyds TSB mortgage.

Customers who take advantage of this offer could save hundreds of pounds a year on their mortgage. For example, in the first year alone, on a 3.99% fixed rate payment mortgage of £150,000, reduced to 3.79%, Lloyds TSB current account customers could save £197, and within two years, save £395. Meanwhile, 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.

Steven 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 Lloyds TSB 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.”

To take advantage of this deal, customers can make an application in branch or over the phone.