MX's 'payment shock buster' will specifically target borrowers who took out low fixed rate deals two years ago when base rates were at 3.5 per cent and are now facing the end of the fixed rate term and potentially higher payments.
The deals are 4.99 per cent fixed for two years with a 3 per cent fee, or a 5.49 per cent fixed for 2 years with a 2 per cent fee. Both deals offer free legals and valuation for remortgage customers and are available through Exclusive Connections.
Andy Wiggans, director of mortgage products at MX, said: "These deals, whilst clearly not for everyone, offer a way for borrowers to minimise the increase in monthly payment they face in exchange for a relatively high fee, which can of course be added to the loan. With free legals and valuation, a customer with a £175,000 loan can reduce their typical payment shock from £1,094 per month to as little as £750."
Matthew Arena, managing director of Exclusive Connections, added: ”These products certainly fill a gap and enable brokers to offer a really good targeted product to remortgage customers. Given the current circumstances surrounding funding, it is great that we have been able to secure this kind of deal but in today’s climate we cannot guarantee how long it will last.”
