The Easy Living mortgage offers a 1% discount on a loan of up to 90% of the property’s value and a 0.5% discount for a loan-to-value of up to 95%. The product allows overpayments, early repayments, switching between repayment and interest-only and changes to the length of term without fees.
The mortgage also has no lock-in period after the first 12 months, and does not charge valuation fees, legal fees, or carry a closing administration charge. 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, said Jon Pain, managing director of Lloyds TSB Mortgages.
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.
Customer retention is important to lenders in a market where consumers are increasingly switching their product every few years in order to take advantage of low introductory rates. Rival lender Abbey has also recently launched a product called Flexible Plus, which offers a tracker rate for the life of the mortgage in order to keep customers from defecting to another bank.
