This rate is available for both purchases and remortgages but in addition a remortgage only option is available at 5.09% (6.5% APR) with a free valuation and free legals.
- Charcol offers 4.99% (6.5% APR) fixed for 2 years for both purchasers and remortgagers
- Additional remortgage only version fixed at 5.09% (6.5% APR) + free valuation & legals
- Penalty free part repayment facility and offer of new deal at end of fixed rate
- Minimum loan for both £150,000
Early repayment charges apply on both deals only during the 2 year fixed rate period and both offer the ability to overpay by up to 10% each year penalty free. In addition a welcome new feature is a guarantee that at the end of the fixed rate period, or later, borrowers can switch into any rate offered by the lender at that time, either as a generic rate or as a Charcol exclusive, subject to paying any product arrangement fee.
Ray Boulger, senior technical manager at Charcol, said, “These are market leading 2 year fixes for borrowers wanting at least £150,000. Anyone who missed out on the sub 5% fixed rates on the way up now has another opportunity to secure peace of mind on their mortgage payments at a very competitive rate for 2 years, allowing them to stop worrying about future Bank Base Rate increases.”
“The general expectation is that Base Rate will have peaked within 2 years and be on the way down again by then. Therefore locking into a fixed rate for more than 2 years could be an expensive mistake. Borrowers wanting interest rate security should avoid fixing for too long and so now could be an ideal period to fix for 2 years.”
There are now three 2 year fixed rates available at 4.99% without trailing redemption charges. How long these deals will remain available remains to be seen. The following table compares the features of each deal that will be of benefit to different borrowers. All these deals are on daily interest.
Lender Fixed Until Max LTV Max MIG free Lender fee Early Redemption Charge Notes
Charcol Exclusive* 2 years 85% 85% £395 3/2% for 2 years. Can repay up to 10% p.a. penalty free. Minimum loan £150,000. Guarantee of choice of any new business rate from the lender, including Charcol Exclusives, at the end of the fixed rate period
Britannia 2 years 95% 90% £499** 2/1% in 2 years. ** Non refundable booking fee.
Halifax 31/12/06 60% 60% £499 2/1% to 31/12/06. Can repay up to 10% p.a. penalty free Purchasers only. Flexible.
* Also available at 5.09% with free valuation and free legals for remortgagers.
2 year fix available to both purchasers and remortgagers
Rate : 4.99% (6.5% APR) fixed for 2 years
Max LTV : 85% (MIG free)
Lender fee : £395
Charcol booking fee : £75
Early Redemption Charges : 3%/2% in 2 years.
: Can repay up to 10% p.a. penalty free.
Min loan : £150,000
Features : Guaranteed option to switch to any rate offered by the lender
: after the fixed rate term subject to paying product arrangement
: fee
Interest calculation : Daily :
Lender : Clydesdale exclusive to Charcol
Remortgage only version
Rate : 5.09% (6.5% APR) fixed for 2 years
Max LTV : 85% (MIG free)
Lender fee : £395
Charcol booking fee : £75
Early Redemption Charges : 3%/2% in 2 years.
: Can repay up to 10% p.a. penalty free.
Min loan : £150,000
Incentives : Free valuation and free legals
Features : Guaranteed option to switch to any rate offered by the lender
: after the fixed rate term subject to paying product arrangement
: fee
Interest calculation : Daily
Lender : Clydesdale exclusive to Charcol
Charcol charge a broker fee of up to 1% for an advisory service completion. The quoted product (and other market leading deals) can be purchased online at www.charcolonline.co.uk without incurring a broker fee. We recommend that any borrower who is unsure if this deal is right for them should seek advice.
Exclusive products are exclusive to the Bradford & Bingley Group. Typical examples for products detailed in this release available on request. Mortgage secured on property. Minimum age 18. Insurance may be required. Loans subject to status, type and value of property. Written quotations available on request. Calls to Charcol may be monitored or recorded for training and monitoring purposes.
