Lloyds Banking Group is offering all borrowers on variablerate deals the opportunity to make overpayments of up to 20 per cent on their ortgage
The company says the scheme which runs from now until March 31, 2011, will allow clients who can make higher monthly repayments the opportunity to take advantage of the current low interest rates.
Brokers have broadly welcomed the move as positive news for borrowers.
First Action Finance head of communications Jonathan Cornell says the scheme is a “positive step forward”, while David Hollingworth, head of
communications at London & Country, says the flexibility is welcome.
Hollingworth says: “It will help borrowers when rates start to rise and will make life that much easier.
“As mortgage products are driven by the level of equity in your home, if you can push the mortgage balance down – with property prices having
become more stable – then that is improving your loa-nto-value position.”