The mainstream product has a rate of 4.99 per cent fixed until 2 May 2006 and is available up to 90 per cent LTV with no overhanging redemption terms.
MI said it has seen an increased demand for fixed rates following the last interest rate rise and that for the main part brokers are looking for short-term, 2 or 3-year deals for their clients.
The network has also rubbished claims that thousands of homeowners could see their monthly fixed rate payments double due to a hidden ‘elephant trap’ in the conditions on which their mortgages were granted.
Property consultancy In2perspective.com has warned that if house values go down, as many predict, homeowners, especially those on fixed or discounted deals, will find they no longer have sufficient equity to meet lender’s requirements and will discover they can only hold onto their homes and mortgages by paying at the standard variable rate.
But Sally Laker, managing director of MI, said: “Anyone that is about to exit a discount or fixed rate product will probably have started their mortgage at least two years ago, in which case property prices will have increased substantially during that time. Suggestions of huge outbreaks of negative equity and people unable to remortgage as a result are somewhat extreme.”
