Lloyds to text mortgage application progress

Mortgage applicants could receive text updates on the progress of their application if they go through Lloyds TSB.

The bank, whose mortgage deals were not recognised as among the top three in the MoneyFacts awards, has launched a text service to notify mortgage customers of the status of their application.

Bank branch and online applications will be eligible for the service which will inform would-be borrowers as they go through four stages of the approvals process.

They will receive a welcome note confirming their application has been received, then a short message telling them their application has been authorised, an offer letter issued and finally a text message confirming their application and giving them a customer services number to call.

Meanwhile, NatWest, whose mortgage offerings also failed to take any prizes at the MoneyFacts awards, announced its first direct-only mortgage deal.

It is the first time the bank offers a home loan package exclusively to customers who apply online or over the phone.

At 5.79 per cent, the fixed-rate deal offers a rate below the lenders standard fixed rate.

It is available to a maximum of 75 per cent of the home value and customers can make up to ten per cent overpayments without incurring early payment charges.