Lloyds fixed rate mortgage ups the ante at 2.94% Go compare with our comparison table

Lloyds fixed rate mortgage ups the ante at 2.94%

03 September 2010 / by Rachael Stiles

Lloyds TSB has launched a new 'market leading' fixed rate mortgage at 2.94 per cent.

The new product is a two year fixed rate mortgage, available for house purchase and remortgage, with a loan to value of up to 70 per cent and a fee of £1,895.

First time buyers can also apply for the mortgage, providing they have the 30 per cent deposit.

As a sign of the times, which have brought record low interest rates, the new Lloyds mortgage is much cheaper than the average deal three years ago. In 2007, the average fixed rate mortgage cost 5.70 per cent, but they were the most popular mortgage product on the market.

Research from Lloyds shows that since their launch in 1989, fixed rate mortgages hit their peak in 1990, when they reached an average 13.85 per cent,

The average fixed rate from the first half of this year was 4.62 per cent, accounting for 46 per cent of all mortgage products, according to Lloyds.

Stephen Noakes, commercial director of mortgages at Lloyds TSB comments, "Twenty years on from the peak of fixed rate products, we're launching a new, market leading rate. Whether you're looking to buy a new home or remortgage to the stability of a fixed deal, this provides certainty of an attractive rate for two years".

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The new Lloyds mortgage is only available in branches, see below for some of the other latest mortgage deals:

Latest Mortgage Deals Selection

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed

2.99%

Reverts to 4.70%

5

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.
Fixed

3.09%

Reverts to 4.70%

5

Years

80%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.

*LTV = Loan to value (how much mortgage you have or require in relation to the value of your property).

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The above mortgage products are a selection of top deals available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you contact our independent mortgage broker team at - independent mortgage broker or call on 0117 332 6063