Ray Boulger, senior technical director at broker John Charcol, said: “One of the benefits of a short term fix for those with only a 10% deposit is that, assuming no change in the property value, on a 25-year repayment mortgage at 3.99% it only takes 2¼ years for the LTV to fall to 85% and every 5% reduction in the LTV required means lower rates are available.
“The impact of the Funding for Lending Scheme is continuing to benefit the mortgage market, with most lenders planning to increase lending this year, resulting in by far the greatest level of competition in the market.”
The product is available for loans up to £250,000 and there is a £1,098 arrangement fee. The deal comes with a free valuation and remortgages also qualify for free legal fees.
