Lloyds TSB launches new ‘low start’ mortgage

Lloyds TSB has announced the launch of a new mortgage, with an interest rate of 1.99 per cent until the end of February 2009, moving to 5.99 per cent in 2012.

Following the introductory five-year period, the product will revert to the lender’s standard variable rate, which is currently seven per cent.

This offer is available to a maximum loan-to-value rate of 90 per cent and allows loan amounts ranging from £25,000 to £250,000.

Jon Pain, managing director of Lloyds TSB mortgages, commented: "The Lloyds TSB low start mortgage will help customers who are looking to keep their mortgage payments as low as possible in the first year whilst still wanting the security of fixed payments at competitive rates for a further four years."

A fee of £999 is payable on this offer and early repayment charges ranging from seven to three per cent apply in the offer period.

The product will be available to borrowers looking to purchase or remortgage.