The 5-Year Fixed Rate Mortgage is fixed at 4.69 per cent until 31 May 2008. This means, based on an £80,000 repayment mortgage, borrowers would make fixed monthly payments of just £454.
Key Features - Flexible 5-Year Fixed Rate Mortgage
* 4.69% fixed until 31 May 2008
* Lifetime discounts through the Society's Concessionary Mortgage Discount Scheme
(see Editor's Notes)
* Available up to 95% LTV
* Free MIG up to 90% LTV
* Free legal fees for remortgages (£250 cashback in Scotland)
* Flexible benefits - daily interest, overpayments and payment holidays
* £395 completion fee
* Up to 10% capital repayments allowed, without charge, each year until 31 May 2008
* Early redemption charge of 3% of the mortgage balance until 31 May 2008
Jennifer Holloway, Head of Corporate Communications, commented, "The Bank of England base rate is now at its lowest level since 1955 and borrowers are keen to lock into this current low rate environment, before rates start to rise again. This loan allows borrowers to fix their monthly outgoings for five full years. In addition, whilst investment returns are so low, they could make regular overpayments and shave thousands of pounds off the balance of their mortgage."
A borrower with an £80,000 repayment mortgage, making a £50 overpayment every month over a 25-year term, would make a saving of over £10,000 and reduce their term by over 4 years. This would equate to monthly repayments of just £504.
