At 85 per cent LTV the two-year fixed rate has an initial pay rate of 5.99 per cent, while at 75 per cent LTV the pay rate is 5.79 per cent. The early redemption charges (ERCs) for both products are 5 per cent in year one and 4 per cent in year two.
The five-year fixed rate has an initial pay rate of 6.19 per cent at 85 per cent LTV and at 75 per cent LTV a pay rate of 5.99 per cent. The ERCs begin at 5 per cent in year one and end at 1 per cent in the final year.
All products come with a £499 arrangement fee and a reversionary rate of Bank Base Rate plus 1.75 per cent.
Colin Barrett, senior products manager at BM Solutions, said: “There is a lot of talk about base rate rises in the market at the moment. This new product range gives our customers the choice and flexibility to fix their repayments over the short to long-term.”
Rod Murdison, proprietor of Murdison & Browning, praised the lender for introducing new rates so soon after regulation. He said: “These rates are pretty good especially in light of the fact that many lenders are not daring to change their products with regulation being so fresh.
“The two-year tie-in is quite fair and clients expect there will be redemption penalties within the term of these deals.”
