Lloyds Banking Group seem to have got a jump on the rest of the market with a shock announcement today. They wish to help customers take full advantage of today’s low interest rate environment so with effect from Saturday 13th March they changed the overpayment concessions on Halifax, BM Solutions and Cheltenham & Gloucester mortgages.
The overpayment concession has been doubled from 10% to 20% until 31st March 2011. During this time clients can pay up to 20% of their variable rate loan balance without incurring an early repayment charge (ERC). This market leading proposition is available to Halifax, BM Solutions and Cheltenham & Gloucester and potentially offers both new and existing clients a fantastic opportunity to make significant savings on their mortgage if they are able to pay down a lump sum over the next year. No ERC, possible reduced monthly payments and thousands of pounds in interest saved over the term of the loan.
Now cynical readers may wish to consider why LloydsBanking Group are taking this step. An uncharacteristic philanthropic outpouring or could it just be that as a group they are desperate to get cash in the door? Either way it is something worth serious consideration if you are an existing client and have some underperforming savings.
Andrew Fowler worked for Limetree Financial Services until December 2010. Feel free to contact another member of our team for help or advice.