TSB has launched an impressively low five-year fixed remortgage rate priced at 2.09% (fixed until 31/07/2020).
It is available to borrowers with a 40% deposit and there is a £1,995 arrangement fee. The overall cost for comparison is 3.4% APR.
After the fixed rate period the mortgage will revert to the lenders standard variable rate, currently 3.99%. There are also early repayment charges which apply until 31/07/2020.
The mortgage is available for loans between £200,000 and £1 million and the bank will pay for the property valuation and legal fees to reduce the cost of remortgaging.
Aaron Strutt, product manager at Trinity Financial, says: “TSB has got some attractive lending criteria and our brokers have been really impressed with their processing times.
“There is a lot of competition between the lenders and they are lowering rates to attract new customers. TSB’s rate is marginally more expensive than HSBC’s five-year fix but it still offers real value for money, especially if you have a larger loan.”
If you wanted to borrow £750,000 over a 25 year term, the monthly payments on TSB’s five-year fix would be £1,306 on interest-only or £3,211 on full capital repayment.
If you would like help to secure a leading mortgage rate, call Trinity on 020 7016 0790.