Homeowners who are looking for lower mortgage payments may benefit from a new product launched by Lloyds TSB.
The Low Start Mortgage, which has a loan-to-value rate of up to 90 per cent, offers an interest rate of 1.99 per cent until February 29th 2008, after which it moves to 5.99 per cent until February 29th 2012.
After the five-year period, the product reverts to the bank's standard variable rate for the rest of the loan term.
Managing director of Lloyds TSB mortgages, Jon Pain, underlined the benefits many existing or would-be homeowners could receive with the new offer.
"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," he said.
It is available on home purchases or remortgages with a value of £25,000 to £250,000.
In related news, a recent report from Nationwide revealed that house prices increased by 1.2 per cent in December, bring the yearly growth rate to 10.5 per cent.
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