With a rate of 3.74% ( 5.5% APR), the new product is fixed until 1 July 2006.
Kevin Robinson, chief executive of Universal Building Society, said: "This mortgage is among the most competitive on the market today and it’s ideal for those customers looking to take advantage of some of the lowest rates ever. We anticipate a strong demand."
With a maximum loan to value of 90%, and a completion fee of £295, this fixed-rate mortgage has no redemption penalty after the fixed rate period and offers a free standard valuation as well as no legal fees to pay for remortgages or £250 towards legal fees for house purchases. Interest is calculated on a daily basis with an option of making capital repayments of up to 10% of the mortgage balance each year.
