![]() Therefore, it is vital that you don’t get sucked in by a cheap headline rate such as the one offered by the Easy Step mortgage. #Lloyds tsb loan calc freeOf course, lenders will argue that you aren’t forced to take out this deal and you are free to choose whatever mortgage you want to secure the roof over your head.īut with repossessions soaring and so many of you already desperately trying to hang onto your home, it is easy to see why some of you might snap up this kind of deal. If you are considering this deal, you need to find out how much it will cost you in total over the three-year deal period and compare this to other products available.Īs mortgage lenders currently appear to have no real drive to compete effectively on price, I expect we could see several more of these gimmicky products pop up on the market.” “Three months at a lower rate may seem attractive, but considering the deal period is three years and the typical term of a mortgage is 25 years, this low rate period is only a tiny proportion of that. That works out more than £3,000 more expensive than the gimmick free 3 year fixed rate mortgage at 4.39% from RBS.Īnd it also makes it £2,747 more expensive than a 3 year fixed rate mortgage of 4.24% currently offered by First Direct.Īnd the higher rates that come into play after 3 months, is where Lloyds TSB will make its money, as the best three-year fixed rate for those of you with a 25% deposit is currently just 4.39%.Ĭhris Eagle, commercial manager at .uk, believes this product is unlikely to offer great value overall, saying: The Easy Step mortgage would, if you were borrowing £100,000, cost you a total of £16,765 over the three years. The low initial payments of the Easy Step mortgage give the option of some breathing space to get on top of moving costs.” ![]() “… looking at different ways to encourage house purchase in order to stimulate the market. Stephen Noakes, commercial director of mortgages at Lloyds banking group, explained that the bank is: The initial rate is 2.49% but then rises to 5.49%. Lloyds also launched an Easy Step deal for those of you with a 40% deposit. Stamp duty and legal fees are just a couple of the bills that see many of you trying to find an extra £4,000. Lloyds says its the Easy Step mortgage is primarily to help you cover your moving expenses. ![]() ![]() You’ll need a 25% deposit and it comes with a £995 arrangement fee. It offers you a low 2.59% rate for the first 3 months but then jumps to 5.59% for the rest of the three-year fixed period. The Easy Step mortgage offers a lower interest rate for the first three months that you own your home. Firstly, they suggested that you use your family to get a 95% mortgage and now they have launched the Easy Step mortgage.īut does it actually live up to its name? Lloyds TSB are clearly trying to be innovative with their mortgages right now. ![]()
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