This flexible product offers a 1.89% discount until December 2007, giving a current payrate of 4.65%, before reverting to a 1.3% discount for a further two years.
Purchasers and remortgagers can borrow up to 75% and interest is calculated daily. There is also a free valuation on properties worth up to £1m and remortgagers have their legal fees paid for them (or in Scotland receive £200 cashback).
Ray Boulger of Charcol comments: “This discounted mortgage offers exceptional value. The current payrate of 4.65% is competitive in its own right and it is the market leading penalty free discount mortgage for 2 years or more. With no redemption penalties borrowers are free to make unlimited overpayments and if they do can later take a payment holiday should they need to.
“Borrowers who overpay will achieve a potential double whammy benefit. They will save interest and be able to pay the mortgage off more quickly and they will also be giving themselves an insurance policy against interest rates increasing more than we expect. In this case you can take a payment holiday occasionally for a bit of a breather.”
