Equity release 'boost' for LloydsTSB customers

Customers of LloydsTSB who are hoping to benefit from equity release schemes in the future may have been boosted by the company's latest mortgages announcement.

LloydsTSB has launched a new product in which people who hold current accounts with the bank are being given a 0.2 per cent reduction on their mortgage interest rates.

The offer is open to all customers who are depositing at least £1,000 into their account each month and taking out a new mortgage from the company.

On a 3.99 per cent interest only payment mortgage of £150,000, reduced to 3.79 per cent, a current account customer could save £301 in the first year, and within two years make a saving of £603, according to the bank.

Stephen Noakes, head of mortgages at LloydsTSB, said customer feedback indicates that people want more flexible mortgage products "which can be adapted and suited to their every changing need".

He added: "Our recent commitments on extending the ability to overpay is just one component of our flexible benefits."

Meanwhile, the Post Office has cut the rates of its fixed-rate mortgages for the fourth time this year.

Ashall Glover Financial Services are equity release specialists