New 1.75 per cent stepped discount

A discount of 1.75 per cent is available until 1 June 2003, before reducing to 0.75 until 1 June 2004, giving an initial pay rate of 6.6 per cent.

Sean Hornsby, sales and marketing director at Mortgage 2000, said: "The step down to 0.75 per cent discount after 1 June 2003 prevents borrowers from experiencing the customary ‘rate shock’ commonly suffered by those coming off discounts straight back onto normal variable rates."

The loan is available up to 80 per cent loan-to-value (LTV). Borrowers are allowed up to £10,000 of CCJs and a bankruptcy discharged a minimum of one year ago. The payable interest rate is tied to LIBOR and ranges from +3.25 per cent to +4.25 per cent, depending on employment, self cert and purchase/remortgage status.

A redemption penalty of 7 per cent applies in years one, two and three, and one per cent or one month’s notice thereafter.