Option 1: Tracks Base Rate for 2 years, current rate 4.00% (4.9% APR)
Option 2: Base Rate + 0.20% for 2 years, no redemption penalties at any time
The first deal tracks Base Rate for the first two years of the loan, giving a current pay rate of 4.00% (4.9% APR). The redemption penalties are six months interest at the tracker rate during this period however borrowers can repay up to 25% p.a. penalty free.
The second deal tracks Base Rate + 0.20% for two years, giving a current pay rate of 4.20% (5.0% APR). This deal has no redemption penalties at any time and features a droplock option, which gives borrowers the right to switch to any of the lender's fixed rates at any time during the first 2 years. With no redemption penalties borrowers are also free to remortgage to another lender at anytime.
Both deals offer all the flexible features, with the facility for overpayments, underpayments, payment holidays, drawdown and borrow back, and of course interest is calculated daily.
Ray Boulger of Charcol commented, "Despite recent increases in Base Rate, and some future increases on the cards, competitive Base Rate trackers still offer good value when compared to current fixed rates. These deals not only offer exceptional value but as they track Base Rate borrowers are not at risk of losing out from the recent trend of lenders widening the gap between their SVR and Bank Base Rate. Both mortgages offer very competitive rates, coupled with all the features most people are likely to want from a mortgage. Borrowers need to decide whether they prefer the lower rate of 4% or whether to pay just 0.2% extra for the freedom of having no redemption penalties from day 1."
Borrowers should contact 0800 71 81 91 or visit www.charcolonline.co.uk
