The new product is at 5.19 per cent (6.60 per cent APR) and competitively priced at 0.69 per cent above the Bank of England Base Rate.
As with all other flexible products, it carries a full range of flexible features - overpayments (including borrow-back facility), underpayments and payment holidays (subject to previous overpayments), and a drawdown facility from a pre-agreed flexible advance.
“Market feedback has indicated that a number of customers are looking for a product which sits between our existing two and five year mortgages,” said UCB Home Loans managing director, Keith Astill. “The launch of a three-year tracker product enables us to offer a wider choice to customers who are looking for a rate which tracks the base rate over a longer period than two years, but who do not wish to commit to a five year product at the current time.”
Keith adds: “This is a market leading product, made even more attractive when combined with our award winning service and low arrangement fees.”
UCB Home Loans is also significantly reducing the rate on its Buy-to-Let 3-Year Flexible Tracker mortgage on 1 September. The tracking increment is being reduced to Bank of England Base Rate plus 0.79%, giving a current interest rate of 5.29% (6.70% APR). This is a reduction of 0.40%, from its previous pricing of Bank of England Base Rate plus 1.19%.
Keith Astill said “Again, we have acted upon what the market is telling us it wants. With three year products appearing more popular with customers, we have reduced the rate on the Buy to Let 3 year tracker significantly, providing them with an attractive and competitive product. We are always monitoring the market closely and aim to provide a portfolio of products which meet the changing needs of our customers.”
Following the recent reduction in the Bank of England base rate, UCB Home Loans will also be reducing its variable rates by 0.25% with effect from 1 September 2005. The new variable rates will be as follows:
Self-certification Variable Rate 7.39%
Flexible Variable rate 6.79%
Investment Flexible Variable Rate 6.79%
