Recognising the difficulties faced by first time buyers in the current market, a new five-year fixed rate mortgage at 4.99 per cent provides a maximum loan to value of 95 per cent, no higher lending charge and free valuation.
The rate reverts to Bank of England base rate plus 0.99 per cent after 30 November 2010. A £99 reservation fee and £395 completion fee apply. Early repayment charges range from 5 per cent in year one to 2 per cent in year five.
Commenting on the product, Elaine Thomas, mortgage development manager at Stroud & Swindon, said: “We know it is a difficult market for first time buyers and have therefore
developed this new mortgage which overcomes the need to raise a large deposit and pay a higher lending charge at a time when there are so many other expenses to meet. At the same
time the very attractive fixed rate provides a guaranteed monthly payment for a full five years therefore avoiding variations in monthly payments which can sometimes be quite difficult to
manage for new borrowers. This therefore makes budgeting easier especially with a first home.”
Other new products in the range include:-
• A two-year fixed rate mortgage set at 4.29 per cent until 30 November 2007 for borrowers looking to take advantage of a low rate via the internet. Maximum loan to value of 75 per cent applies.
• A flexible fixed rate mortgage of 4.99 per cent until 30 November 2007 with the added advantage of no early repayment charges at any time plus the ability to overpay or even take payment holidays.
• A 6% cashback mortgage for those wanting to raise additional funds which also offers a discount of 0.55 per cent off SVR until 30 November 2010 (current rate payable 5.99 per cent)
Reservation and/or completion fees apply to all these mortgages. All products include the ability to repay up to 25 per cent of the loan without charge in the early repayment charge period.
