The key features of the product are initial discounts of between 2.3 and 1.85 per cent in the first year depending on the loan to value, 1.15 to 0.85 in the second year and then 0.5 per cent in years three and four.
A further 0.5 per cent discount is available from year five. Interest is calculated daily, overpayments, underpayments and payment holidays are allowed. Up to 10 per cent in capital repayments are allowed each year without charge and a decreasing early repayment penalty of four per cent, three per cent, two per cent and one per cent applies.
