It will be offering a two year discount and a five year stepped mortgage. Both mortgages will track the Bank of England (BoE) rate and carry competitive intermediary procurement fees.
The two year discount mortgage will offer a rate of 4.04% for two years (0.21% below the BoE rate). This then moves to 4.94% (BoE rate +0.69%) for the life of the mortgage.
The five year stepped mortgage starts at 3.14% for the first year (1.11% below the BoE rate), increasing in steps, that track the BoE rate, over the next four years (currently 4.44%, 5.24%, 5.74% and 6.14%). It then moves to 4.94% for the life of the mortgage i.e. 0.69% above the BoE rate.
Jayne-Anne Gadhia, who will head up the new operation, said: "Our research shows that intermediaries believe that a discounted initial rate and low long term rates linked to the BoE rate are among the most important interest rate features of a mortgage. On top of that, good service is paramount. Our first two products offer hugely competitive initial and long term rates backed by a quick and efficient service which will minimise paperwork for intermediaries." she said.
