Mortgage Deals Help…

The Easy Step mortgage is a new mortgage deal offered by Lloyds TSB, which allows lower repayments over the first few months of the deal, which will allow the borrower to plan and settle into the mortgage more easily. 

The mortgage is a three year fixed rate deal with an initial 2.59 per cent for the initial first few months, then moving to the higher rate of 5.59 per cent for the rest of the three year fixed rate.  The higher rate is not very competitive in the current market but the initial rate may be attractive to a small minority of borrowers.

Stephen Noakes, commercial director of mortgages, Lloyds Banking Group said; “Upfront costs such as legal fees or stamp duty can discourage potential buyers from making that purchase. The low initial payments of the Easy Step mortgage give the option of some breathing space to get on top of these costs.

“As the UK’s largest lender we’re looking at different ways to encourage house purchase in order to stimulate the market. The Easy Step mortgage offers customers another choice in our homebuyer range.”

However, with a £995 setup fee it’s not obvious who the likely borrower will be for this deal as there are cheaper deals out there.  Existing borrowers would be better off falling straight into the banks variable rate of 2.5 per cent.