First fully flexible and fee-free mortgage

The Lloyds TSB ‘Easy Living’ mortgage allows customers to make overpayments, pay off their mortgage early, switch between repayment and interest-only or change their term, at any time throughout the life of the mortgage and without paying a fee.

Customers have peace of mind knowing they can apply to borrow more with the same discount without paying a fee, or switch to another product, whenever they like as there’s no lock in period. None of the usual product fees, valuation fees, legal fees or closing administration fees apply.

The mortgage is available from Wednesday 30 August through all Lloyds TSB branches to customers borrowing between £25,000 and £1.5million on up to 95 per cent of their home’s value.

Jon Pain, managing director of Lloyds TSB Mortgages said: “The Easy Living mortgage means customers no longer have to switch their mortgage every two or three years in order to get the best deal. In fact, over a 25 year term, if a customer remortgages at the end of each deal, they could be spending thousands more over the mortgage term than someone who chooses Easy Living.”

Many people significantly underestimate how moving their mortgage regularly impacts their wallet as well as their time. Lloyds TSB research has found that a quarter of people with a fixed rate mortgage do not even consider the likely costs of re-mortgaging when deciding on a short term fixed rate mortgage.

Research also reveals that the average length of time between switching mortgage products is just 3.5 years – four times more often than the average person moves house.

Anyone switching their mortgage every 3.5 years over a 25 year period could typically spend £4,000 on mortgage fees. Furthermore, 9 per cent of people are unaware that they will have to pay these fees.

Jon Pain, said: “A deal that looks attractive today may end up costing homeowners more than they thought two or three years down the line when they need to rearrange their mortgage. Easy Living removes any concerns about entry fees, exit fees and re-mortgaging costs and means customers never need to change their mortgage again.”

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