- Bank Base Rate +0.19 per cent for term – current pay rate 4.69 per cent, 4.7 per cent APR
-NO ERCs at any time
At a time when there is uncertainty over where interest rates will move next, the drop lock option provides the perfect addition to a leading variable rate mortgage.
Ray Boulger, senior technical manager at Charcolonline.co.uk, comments: “At BBR +0.19% this mortgage has the lowest rate of any lifetime tracker mortgage available in the UK, coupled with a below average arrangement fee of £399. The inclusion of a drop-lock facility, allowing borrowers to transfer into a fixed rate at any point for any reason provides the icing on the cake. This facility offers borrowers a very simple process to switch onto a fixed rate at any time they decide it is more appropriate to their needs, or simply because they decide a fixed rate offers better value. If a great fixed rate becomes available from another lender borrowers are equally free to remortgage as there are no ERCs on this deal.”
The above rate is available to both purchasers and remortgagers but, in addition, remortgagers can choose to have a free valuation and free legals in exchange for paying a slightly higher rate of BBR +0.24%.
“With no ERCs this mortgage automatically allows unlimited overpayments without charge. It is not flexible, however, borrowers contemplating a current account mortgage, but only expecting to use the overpayment facility rather than the other features, will find the low rate on this mortgage allows them to make greater overpayments, thus redeeming their mortgage even sooner than with a current account mortgage. In addition, because the rate differential between these products and many short-term trackers and discounts is so small, even borrowers looking for a short-term deal should consider these products.”
