With a current payment rate of 4.99% for two years, Universal expects demand for this new mortgage expected to be high, following predictions of lower interest rates over the next two years.
The New Base Rate Tracker offers:
- Current payment rate of 4.99% for two years
- A guarantee that the annual rate of interest will be 0.24% above the Bank of England base rate for two years, thereafter there is no extended tie-in after the discounted period.
- Minimum loan £20,000
- Maximum loan £500,000
- The overall cost for comparison is 6.9% APR
The standard variable rate currently 6.79%, will apply after the first two years of the mortgage. A 3% early repayment charge if part or fully redeemed in the first two years applies..
Additional features include annual capital repayments of up to 10% of the mortgage balance permitted, daily interest, free standard valuation up to £200, no extended tie-in after the tracker period and you can borrow up to 90% loan to value.
Remortgage customers can also benefit from free legal fees with Universal’s Fasttrac® mortgage transfer service. A completion fee of £495 applies to the Base Rate Tracker Mortgage, which can be added to the loan.
Kevin Robinson, Chief Executive of Universal Building Society, said: “This new base rate tracker is further proof of Universal’s reputation for competitive mortgage products. We expect demand to be high.”
