Available at an initial rate of 6.04 per cent, the product is available across the SPML product range, up to 95 per cent loan-to-value.
Lynsey Mitchell, head of sales and development at SPML, said: “We are very pleased to be able to offer this one-year fixed rate product which extends the choice to our mortgage intermediary partners. This product has been designed specifically for customers who would like to improve their credit profile within 12 months while benefiting from a fixed rate.”
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An arrangement fee of £995 exists on the product, with an early repayment charge (ERC) of 6 per cent during the fixed period, with one month’s notice required after the fixed period.
Commenting on the product, Hugh Nichols, partner at Badbury Berkeley Financial Services, argued that there were more competitive mortgages in the market. He said: “The arrangement fee is quite high for a one-year fixed rate, but the 6 per cent ERC should not come into the equation, as it is a short-term fixed rate deal. The interest rate isn’t that competitive in the market and if it has a completion date, then, due to the house buying process, it could only be six months that the buyer is actually in the property.”
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