Lloyds TSB has launched a 2.99 per cent mortgage offer which is coming in for some criticism. The bank has admitted that it is using the deal to attract customers, although there are very strict lending conditions attached.
Telegraph.co.uk has reported that it has seen a letter sent to Lloyds branch managers, whereby it has admitted that it is launching the 2.99 per cent two-year fixed-rate deal. However, it is for those who can put down a 40 per cent deposit.
In addition, it carries one of the highest arrangement fees currently on the market at 2.5 per cent. What this means to the customer is that they will have to pay around ?4,000 to have a mortgage of ?150,000 processed.
Phrases in the letter include the product ?isn?t suitable for everyone? and suggest the offer is ?a conversation starter with potential mortgage customers?.
The offer is to be launched tomorrow but many experts doubt that many of the deals will be sold. It follows a similar offer launched by Halifax which also came in for a lot of criticism.
A spokesman for Lloyds TSB said: ?As the UK?s largest mortgage provider, we take our responsibility to continue to lend seriously and have maintained our market share over the past year. Our mortgage range is designed to meet the different needs of our customers, by offering a variety of rates and fees. As a relationship-focused bank it is natural for our colleagues to want to discuss with our customers the range of products available to them.?
