The mortgage will be fixed at 3.95% until 1 September 2008 and has no extended redemption penalties.
Market Harborough Building Society Chief Executive Philip Dearing said: “The Chancellor’s idea of 20-30 year fixed rate mortgages may not represent best value for UK homeowners given our present low interest rate environment. Ironically, in the US many mortgages are moving away from long term fixes and more to shorter UK market style Adjustable Rate Mortgages – a reflection of the 1.25% Fed rate. Our five year fixed rate offers the opportunity to lock into a sub 4% five year fix, thereby providing certainty of payment for a reasonable period.”
