Charcol launches fee-free tracker

Dubbed the ‘simple to switch’ tracker, it has no arrangement fee, no exit fee, free valuation and legals for remortgages, no Early Repayment Charges (ERCs) and no Higher Lending Charge.

Key product features include:

• Up to 80% LTV: Bank Rate +0.17 for the term so pay rate currently 5.92% (overall cost for comparison is 6.0% APR)
• Up to 95% LTV: Bank rate +0.28 for the term so pay rate currently 6.03% (overall cost for comparison is 6.1% APR)
• Flexibility: allowing overpayments, underpayments, and payment holidays.
• No Arrangement fee
• No Higher Lending Charge
• Available to First Time Buyers
• Available for purchase and remortgage
• For remortgages free valuation and free legals

Katie Tucker, product specialist for Charcol.co.uk, said: “This product is ideal for borrowers who want to remortgage now without the fuss or the fees, and for those who never want to pay a fee again. It tracks the Bank rate at a competitive level for the whole term of the mortgage, there is no Early Repayment Charge at any time, and there isn’t even an exit fee.

“For borrowing up to 95% the 0.28 over base tracker, the Higher Lending Charge is totally waived. Those lenders who charge HLC the equivalent of around 1.6% of the loan for 95% loans, so this product saves a borrower with £150,000 loan a fee in the region of £2,500.

“Tracker rates are the hot favourite now the market looks as though Bank rate is near its peak, with fixed rates yet to reduce to levels that offer a competitive alternative for the mid-risk borrower.”