The product has an initial rate of 5.74%, which tracks Bank of England base rate +0.99% until 30/09/10, after which the loan reverts to a privileged variable rate of 6.53% for the remaining term (6.5% APR).
Key features include:
- 3% Cashback payable on completion (maximum payable £30,000)
- Current pay rate of 5.74% (Bank base rate +0.99% until 30/09/10)
- Reverts to privileged variable rate of 6.53% for the remaining term
- The overall cost for comparison:6.5% APR
- Max LTV 75%
- Can repay 5% p.a. without early repayment charges
- Flexible features
- Fixed legal fee of £250 for remortgages
- Early repayment charges only apply until 30/09/10
Duncan Pownall, mortgage development manager at Bradford & Bingley, comments: “The 3% cashback tracker mortgage will appeal to both homemovers and remortgagers. The cashback element in particular offers a helping hand for first time movers, who may have benefited from the house price growth of recent years and now enjoy a healthy level of equity within their property, but are now faced with much larger moving costs. This product helps these people take a step up the property ladder where they may now have to pay stamp duty of 3%. On a £255,000 property this equates to £7,650. This pull on the purse strings can be alleviated with the cashback, giving buyers a financial boost when they need it most.
“For those remortgagers who are looking to improve rather than move, the cashback also provides a great option. It enables borrowers who don’t wish to eat into any equity they have built up in their home but would like to raise capital to help fund a project, providing them with extra funding at a competitive rate without taking out a personal loan.
“This is just one of the many exclusive products that we have launched to help homebuyers during the traditional moving season. This product aims to take the sting out of the associated costs when buying a home or indeed when improving your home by remortgaging, in particular remortgagers benefit from fixed legal costs. Overall this represents a very competitive 5 year cashback deal.”
