LloydsTSB is offering its current account customers a 0.2% reduction on its mortgage interest rates.

This is available to any LloydsTSB current account customers who deposit £1,000 or more each month and are taking out a new LloydsTSB mortgage.

In the first year, on a 3.99% fixed rate repayment mortgage of £150,000, reduced to 3.79%, LloydsTSB current account customers could save £197, and within two years the customer could therefore save £395.

On a 3.99% interest only payment mortgage of £150,000, reduced to 3.79%, a LloydsTSB current account customer could save £301 in the first year, and within two years the customer could save £603.

Stephen Noakes, head of mortgages at LloydsTSB, said: “Rewarding our current account customers by helping to reduce the costs of their mortgage payments is just one of the ways LloydsTSB will continue to deliver the best value mortgages and develop deeper relationships with our customers in these still challenging times.