Lloyds launches ‘fully flexible’ mortgage

Lloyds TSB has introduced what it describes as the UK’s first fully flexible mortgage, with a one per cent lifetime discount on the lender’s standard variable rate up to 90 per cent loan-to-value (LTV) – giving a current rate of 5.75 per cent.

For customers wishing to borrow up to 95 per cent of the value of their home, a 0.5 per cent discount will be offered – creating a rate of 6.25 per cent.

The mortgage is available to customers borrowing between £25,000 and £1.5 million on up to 95 per cent LTV and does not include any of the conventional fees, unless customers require a service which doesn’t come as standard.

Borrowers are allowed to make overpayments, pay off their loan early, switch between repayment or interest-only schemes and change their term.

Jon Pain, managing director of Lloyds TSB mortgages said: “The Easy Living mortgage means customers no longer have to switch their mortgage every two or three years in order to get the best deal.

“In fact, over a 25-year term, if a customer remortgages at the end of each deal, they could be spending thousands more over the mortgage term than someone who chooses Easy Living.”

The offer is available now through all Lloyds TSB branches.