Marketplace launches two year stepped fixed rate at 2.99

Key features include:

Initial fixed rate of 2.99% until 01/07/2004

Then 4.25% fixed rate until 01/07/2005 (equating to an average rate over 2 years 3.62% assuming a completion date of 1st July 2003)

Maximum LTV of 95%, MIG free to 90%

Ability to repay 10% of the loan penalty free each year in fixed period

Arrangement fee £300

No redemption penalties after fixed period

Commenting on the new product, David Bitner, head of product operations for The MarketPlace, said: “The average rate on this product is only around 0.1% above the current comparative best buy 2-year deal, but the key to this mortgage is the very low rate in the first year. At just 2.99%, it enables borrowers to keep their initial monthly payments at a minimal level. This would particularly suit, for example, a home-mover or first time buyer with access to a 10% deposit, who has some work to do on their new property and need all available money to do this.”