Charcol has launched a one year fixed rate mortgage at 4.49% (5.50% APR), followed by a lifeti...
Charcol has launched a one year fixed rate mortgage at 4.49% (5.50% APR), followed by a lifetime stepped discount.
After the fixed rate period, the loan reverts to a discount of 0.75% below the SVR (currently 5.95%) for two further years, and then a 0.5% discount for the remaining term of the loan. Redemption penalties only apply during the first two years of the deal.
Ray Boulger of Charcol commented: "This mortgage offers particularly good value for borrowers who want a 95% mortgage and is likely to appeal especially to first time buyers struggling to get a foot on the property ladder. Not only will the cashback and free valuation help towards purchasing costs, but it is also MIG free and has a competitive initial fixed rate to help with budgeting during that first year of the mortgage, which often tends to be an expensive time. Most lenders charge a MIG fee of approximately 1.7% on a 95% mortgage (£1,700 on a £100,000 loan) therefore by avoiding the MIG, borrowers make a substantial saving.
"After the first year on a fixed rate, the loan switches to a competitive stepped discount for the remaining term, but, should borrowers wish to switch loans, they can do so after two years without penalty."
Charcol may be contacted at 0800 71 81 91 & www.charcolonline.co.uk
Features of the loan:
Max Loan To Value - 95%
Lender's fee - £295
Early redemption charge - 3% in first 2 years
Free valuation up to £200,000 and £250 reduction in cost thereafter.
Lender's SVR - 5.95%
Funded by - West Bromwich
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