New market leading residential rate - 24.09.2009

Author: Andy McOwat Posted on: 24 September 2009

A new tracker deal at 1.98% has been launched for both purchases and remortgages on the market.

This is 1.48% above the base rate and lasts for 12 months. this then reverts to 2.49% plus base rate for the remainder of the term. You are tied in for a further 2 years  but even at 2.99% this is still a very attractive rate in the current market. 

There is an Early Redemption Charge of 2% during the initial 3 years. The minimum loan is £200k with a maximum 60 % loan to value and they will even pay for a valuation and the legal fees in the case of remortgages.

This is a direct competitor for the HSBC scheme which has received a lot of press attention recently. Our view is that any competition is good for the market and it is good to see that rates as low as this can be achieved. Let's hope more lenders follow suit.    

Author: Andy McOwat