It allows unlimited capital repayments allowed at any time without penalty.
Stuart Fearn, product development manager said, "Fixed rate mortgages are proving increasingly popular. The Council of Mortgage Lenders research shows that fixed rate products accounted for around 60% of house purchase and remortgage loans in 2005. With market rates also increasing, there is growing expectation that the next bank base rate change may result in an increase, and many more customer may look to lock in good value.
"This 2-year fixed rate product is highly competitive and provides customers with a guaranteed payment, allowing them to budget effectively and protect them against any base rate increases during this period. There is no higher lending charge up to 90% loan to value and the product is fully portable, so if customers do wish to move within the 2 years, they can take this deal with them.
"We have also produced a 2-year fee free version for customers who prefer help with fees. This product, at only 5.59 %, has no higher lending charge up to 90 % loan to value and also offers a free valuation up to £335, unlimited capital repayments without penalty and free in-house legal services for remortgages. Therefore, if a customer is looking for a short term fixed rate, we have a highly competitive option to suit them."
