Leeds Building Society has launched a discounted rate undercutting the lowest fixed and tracker mortgages.
The 0.99% rate has a 4.70% discount from the lender's 5.69% standard variable rate for two-years. The overall cost for comparison is 4.8% APRC representative.
The mortgage has a £1,999 arrangement fee, and applicants will need a 35% deposit to qualify. The maximum loan is £1.25 million, and it has to be taken on full capital repayment.
Early repayment charges apply during the discounted period, and up to 10 percent capital repayments are allowed each year during the variable rate period without incurring an early repayment charge.
Leeds will contribute to costs if you are remortgaging to the lender and the product is not available on interest-only.
Aaron Strutt, product director at Trinity Financial, says: “The vast majority of borrowers lock into two and five-year fixed rates but a selection of lenders offer competitively priced two-year discounted rates.
“Accord Mortgages offers a range of discounted mortgages for loan sizes between £50,000 and £3 million. They do not have any early repayment charges, so borrowers are free to switch to fixed rates when the rates start to rise.”
Representative example: A capital and interest mortgage of £180,000 payable over 25 years, initially on a 0.99% discounted rate for two years and then on a 1% discount off of the current standard variable rate of 5.69% for 3 years, would require 24 monthly repayments of £677.32 followed by 36 monthly repayments of £990.10 and 240 monthly repayments of £1,075.79. The total amount repayable would be £312,122,94 made up of the loan amount, plus interest (£130,088.94) and £1,999 (product fee), £199 (final repayment charge), £35 (completion fee). The overall cost for comparison is 4.8% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity Financial on 020 7016 0790 to secure a discounted mortgage rate