The reduction, which takes effect from 17 October, sees the rate lowered from 4.85 per cent to 4.75 per cent. The deal has no arrangement fee, free valuation up to a maximum of £320, and free legals for remortgagors, and is available for purchase and remortgages. Maximum LTV is 90 per cent, maximum loan size is £2 million and the minimum is £50,000. No higher lending charges apply and the mortgage is portable.
Overpayments, underpayments and payment holidays are accepted, with ERC free payments allowed up to 10 per cent per annum. ERCs are applicable at 5 per cent for the first three years, 4 per cent in year four and 3 per cent in year five. The deal reverts to 6.30 per cent after five years and an exit fee of £140 is payable.
Duncan Pownall, mortgage development manager at B&B, said the reduced rate was another improvement to an already competitive product. “In a year when mortgage arrangement fees have crept up and up we’ve actively pursued fee-free remortgage products for our customers,” he said.
“This is another example of how we understand our customers and are able to work closely with our lending partners to achieve real value for everyone seeking a mortgage.”
Ray Boulger, senior technical manager at John Charcol, said the revised product was a good offer for those with smaller mortgages. “The £320 cap on free valuations is pretty low which means for most people with larger value properties valuation won’t be free.
“For those with a small mortgage up to £50,000 where minimising fees is important this product is good value, but for most, going to a lender with a better rate without freebies is more appropriate.”
