Operating at a rate of 4.24 per cent for two years at 90 per cent LTV the offer is available through direct submission only with 0.35 per cent broker commission for online applications.
David Copland, marketing director at Pink, said: “Customers benefit with Base Rate trackers as any cuts to the rate are immediately passed onto the borrower compared to discounted products from standard variable rates. This rate will challenge the fixed rate products within the marketplace.”
Pink’s shared tracker rate includes an early repayment charge of 5 per cent of the amount repaid in the first year with 4 per cent in the second year of the term, incorporating an arrangement fee of 1 per cent of the loan.
However Rod Murdison, proprietor of Murdison & Browning, expressed concerns associated with the extra costs: “Looking purely at headline rate this tracker product is very competitive. I could only find rates from Alliance & Leicester and Nottingham Building Society that could match or beat it.
“However, comparing the three lenders is a great illustration of how certain providers are trying to give with the one hand while taking back with the other. BM Solutions’ valuation fee includes a £150 administration fee plus there are vacating and deeds dispatch fees totalling £200. Worst of all is BM Solutions’ 1 per cent arrangement fee which on a £100,000 mortgage would be £1,000.”
“I added the £150 admin fee, £200 redemption fee and £1,000 arrangement fee to 24 months interest-only repayments at 4.24 per cent and found the true rate in terms of money the client has parted with over the two years to be 4.915 per cent,” he added.
