The lender said it launched the product due to the success of its five-year Swiss LIBOR product and the continued attractiveness of the Swiss rate compared to both British LIBOR and Bank of England Base Rate.
The three-year deal will also be available direct to brokers, as well as through packagers, and has its denomination in sterling so there is no currency risks.
Tony Capon, head of intermediary sales at Salt, said: “The Swiss economy is one of the most stable in the world and while interest rates in the majority of the world’s major economies have been edging up, the rates remain lower than the UK and should continue to do so. Therefore, we can continue to link our products with Swiss LIBOR as they will have the advantage in terms of price.”
Despite also offering the product directly, Salt reaffirmed its commitment to the packager market and said it has upped its future panel projections to 15 members, with Complete Mortgage and Loans Service the latest firm to be added.
The lender also promised to continue to be innovative with its products, with euro LIBOR and US dollar LIBOR products on the horizon.
Capon commented: “As a lender, being innovative is central to your proposition. You have got to be innovative in your products.”
Jon Burridge, managing director at Quantum Mortgage Brokers, said: “This type of product is higher risk than ordinary sterling mortgages and those who choose to take them have to be aware of that. However the rewards can be very good and this product is a good example of innovation from a lender, which I like to see.”
