The new mortgages are as follows:
Fixed Rate Mortgage – 5.49% (5.8% APR) until 31 October 2006, followed by a further one year discount of 0.15% off the bank's standalone variable mortgage rate.
Tracker Rate Mortgage – Base Rate plus 0.19% so will launch at 4.69% (5.6% APR). The tracker rate will run until 31 October 2006 when the product will revert to the bank's standalone variable mortgage rate, which is currently 5.70%.
As with the current fixed and tracker mortgages, the new mortgages will not offer the ability to offset savings against the mortgage balance. Intelligent Finance will continue to pay legal fees and refund the standard valuation fees for remortgages. Though for any remortgages redeemed prior to 31 October 2006, the bank will reclaim £330 towards the costs of the legal fees and valuation.
An arrangement fee of £325 will be charged, which can be added to the mortgage if required. Clients will be able to borrow from £25,001 to £1 million, up to 80% of the value or purchase price of their property, whichever is lower. Early repayment charges apply on both products until 31 October 2006 when the fixed and tracker periods end.
Head of Intermediary Sales, Brian Ewing said: "We see these products appealing to second-time buyers, those looking to remortgage or first time buyers with a significant deposit to invest in the property. The rates position the products as amongst the most attractive within the marketplace and the new standalone products continue to offer an appealing addition to our marketleading offset mortgage proposition."
