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Lloyds Bank launches lowest mortgage rate on the market but there's a catch

Lloyds Bank launches lowest mortgage rate on the market but there's a catch

Daily Mirror18-07-2025
Lloyds Bank is launching a two-year fix at 3.69 per cent - the lowest rate on the market. But it does come with certain conditions that customers must follow
Lloyds Bank is delivering a significant boost to mortgage customers. The high street lender has unveiled a two-year fixed rate at 3.69 per cent, marking the most competitive deal currently available, though the offer comes with certain conditions.

Whilst Lloyds has introduced this offer, it has waned that eligibility is restricted to Club Lloyds account holders exclusively. The package includes a £999 arrangement fee and requires a 40 per cent deposit, available solely to existing or prospective Club Lloyds members.

Commenting on the mortgage rate battle, Aaron Strutt from Trinity Financial said: "It shows how keen banks and building societies are to attract borrowers. If you can get a sub-four per cent rate I still think you are doing pretty well."

He added: "I would not bet against rates being closer to 3.5 per cent over the coming months, but as we have seen so many times before almost anything can happen."
Nick Mendes from John Charcol said: "The latest inflation figures were a little wobble, but given the employment figures the economy needs support. An August base rate cut is still priced in overwhelmingly."

Lewis Shaw from Shaw Financial Services advised: "If my mortgage deal were due to expire within the next three months, I would take action this week."
According to Lloyds' website: "You must have a Club Lloyds current account open before you take out your mortgage. This includes our Silver and Platinum Club accounts.
"There is a £5 monthly fee to maintain the Club Lloyds current account, unless you pay in £2,000 or more each month. Offer can be changed or withdrawn at any time. Product conditions may apply."
The offer is available to Club Lloyds current account holders who are either first-time buyers or looking to re-mortgage, reports Birmingham Live.
It's also open to those moving house, switching to a new deal, or investing in buy-to-let properties. The initial move is to utilise a mortgage calculator to check out the most recent products and rates on offer.
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