Available from 4.94 per cent until 30 May 2009, the offer is available for both purchase and remortgages. The arrangement fee is set at £995, up to 95 per cent loan-to-value.
Tony Burdin, head of group marketing at Scarborough, said: “Although there is evidence that confidence is returning to the market as the traditional Spring house buying season approaches, the prospect of a further Bank of England Base Rate rise in the next couple of months continues to create an element of uncertainty.
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“The issue is compounded by the fact that cheaper fixed rate deals have become fewer and further between as many lenders have been forced to re-price their ranges due to the knock-on effect of the rising cost of funds.
“This is why we decided it was important to offer an alternative which would give home buyers the added peace of mind of affordable, guaranteed payments for two years, after which there is every chance that the rate tide will have started to turn again.”
Alan Lakey, partner at Highclere Financial Services, said: “Fixed rates are particularly popular at the moment and many of my clients are on a fixed rate mortgage. 4.94 per cent is a very reasonable rate compared to Alliance & Leicester, which offers a two-year fix of 4.99 per cent with a £999 arrangement fee. Many lenders have issues but I have found Scarborough BS to be very good and I will certainly make use of this offer for my clients.”
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