· 0.51% below Bank Base Rate for 2 years (pay rate = 3.99%)
· Ideal for larger loans (up to £2 million)
· No trailer penalties
The deal, which offers borrowers a rate of 0.51% below Bank Base Rate (BBR) for two years, has a current pay rate of 3.99% (5.6% APR). It is available up to 90% loan to value (LTV) and reverts to BBR + 1.25% for the remaining term, although as penalties only apply in the first two years borrowers can also switch to an alternative deal after this period. Interest is charged daily.
Ray Boulger of Charcol said, "This deal is by far the cheapest discount or tracker mortgage currently available. Not only that, it is available up to 90% LTV, whereas the next cheapest discount or tracker* is only available up to 60% LTV. Even those borrowers reluctant to opt for a discount or tracker mortgage should consider this deal, as Bank Base Rate would have to
rise by over 1% to over 5.5%, before the pay rate would increase to above the level of today's cheapest two year fixed rate.
"There is an above average £699 arrangement fee on this deal. However, to put this into perspective, on a £100,000 mortgage the fee is equivalent to 0.35% on the rate. Thus, except for very small mortgages this is still easily the best value two year deal on the market, and the larger the mortgage the better the value. Furthermore, the lender offers an efficient and speedy online applications process, meaning that borrowers shouldn't
have to wait around for their mortgage offer".
Borrowers should contact 0800 71 81 91 or visit www.charcolonline.co.uk
