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
(see Editor’s Notes)
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.