Standard Life Bank’s new rates start from 5.39 per cent (6.2 per cent APR) on its five-year product, available up to 50 per cent LTV.
According to the lender the revised rates are aimed at making Standard Life Bank more competitive on the verified products filtered selection of Mortgage Brain, the mortgage sourcing system.
While borrowing at a fixed rate, customers can also use the flexible options of Standard Life Bank’s Freestyle mortgage, such as the ability to make overpayments, and access their cash reserve for further borrowing at mortgage rates.
There will be no change to Standard Life Bank’s £299 booking fee to secure the new rates, available from 7 October 2004.
The new rates will be available on all three and five-year fixed rate mortgages from this date.
According to Rob Clifford, managing director of broker franchising operation Mortgageforce, fixed rate deals are on the increase.
“We are finding that 55 per cent of our clients are opting for fixed products. They are seeking the comfort and security that these products offer in an environment where some fear future rate rises.”
Clifford went on to say that fixed rates as a whole were becoming more attractive after their rates reached a peak six months ago. “At the end of the day lenders realise that it is important to satisfy customer demand,” he said.
Alan Dring, head of sales at Standard Life Bank, said: “Certainly our fixed rate deals are getting a lot more attention now. The rates are a lot more attractive and we believe it is better to offer people competitively-priced fixes then risk churn by offering discounts,”
