Lloyds TSB offers bank customers mortgage discount

Lloyds TSB is offering its current account customers a 0.2% reduction on its mortgage rates for account holders who deposit at least £1,000 a month and who take out a new mortgage with the lender.

The lender has calculated that based on a repayment mortgage of £150,000 and a fixed rate deal reduced to 3.79% from 3.99%, current account customers could save £197 in the first year and save £395 within two years.

On an interest only mortgage of £150,000 at 3.79% current account customers could save £301 in the first year, and £603 within two years.

Stephen Noakes, head of mortgages at Lloyds TSB, says: “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 develop deeper relationships with our customers in these still challenging times.”

Current account customers with Lloyds TSB can access the deal by visiting a Lloyds TSB branch or by phone.