From fixed rate to variant - a 'first' for UK mortgages

Private Label has announced the launch of a mortgage product it claims uses a structure never before available in the UK mortgage market. The premise is a 5.79% (APR 6.8%) five year fixed rate which can be turned into a variable rate tracker at the discretion of the customer. The 5.79% five year fixed rate to 1 September 2006, claims Private Label - part of the GMAC group, is the market leader for loans from £25,000 up to 99% loan to value (LTV) with a daily interest charge. Investors contemplative that the bank base rate will continue to fall and undercut the group's fixed rate...