Tony Burdin, head of marketing at the society, said: "With the January sales in full flow we felt it was an opportune time to launch our cheapest mortgage. This is a limited period offer designed to take advantage of an initial ‘best buy’ rate and then have certainty about the interest rate for three years."
The mortgage is:
o available up to 95 per cent of property value for new borrowers and remortgages
o has no application fee
o offers free in-house legal services for remortgages
o comes with six months free mortgage payment protection cover
Borrowers seeking early redemption will be charged four months interest in the first year, six months interest in year two, five months interest in year three, four months in year four and three months in year five. After the initial offer period the rate will revert to the lender’s standard variable rate but will not exceed bank base rate plus 2 per cent for three years.
