The product is at Bank of England Base Rate (BBR) plus 0.29 per cent, available until May 2009, after which time it then reverts to BBR plus 1.75 per cent. An 85 per cent loan-to-value (LTV) is also available.
There is no higher lending charge, with the option of a free valuation, and a 1.5 per cent admin fee can be added to the loan. Early repayment charges start at 5 per cent for the first and second years reverting to 4 per cent for the final year of the amount repaid to May 2009. The minimum and maximum loan values are £15,001 and £400,000, with proc fees paid at 0.5 per cent.
Commenting on the launch, Christopher May, director of Mortgage Times, said: “The 4.79 per cent rate is competitive especially when combined with a free valuation.”
Deirdre McManus, head of sales at Bristol & West Mortgages, said: “We believe this will be a great enhancement to our offering. We currently have two on-site underwriters which means the whole application to completion process is far more streamlined.”
Mike Pendergast, IFA at Zen Financial Services, said: “The free valuation is particularly appealing. The product may be better suited to clients with higher loans as it has quite a high arrangement fee and therefore, larger borrowers will be looking to keep interest rates as low as possible.”
