Charcol have launched a new mortgage that is fixed at 3.49 per cent until 1 December 2003, before reverting to a tracker at Bank Base Rate plus 1.24 per cent to 1 January 2007.
The valuation fee is refundable, and redemption penalties only apply for the first two years.
Ray Boulger, senior technical manager at Charcol, said: "This mortgage offers excellent value to anyone wanting guaranteed initial low payment stability, coupled with no nasty lock-ins. Not only do the redemption penalties only apply for the first 2 years, but borrowers can repay up to 25 per cent of the loan completely penalty free at any time."
