The mortgage is either fixed for one year at 5.29 per cent or two years at 5.99 per cent, before reverting to Bank Base Rate plus 0.65 per cent.
The products, which are available up to 90 per cent loan-to-value, also have a free valuation and either free legal fees or £200 cashback, while there is a 5 per cent redemption charge for the first three years.
Richard Barker, product manager for Norwich & Peterborough, said: “Our existing fix and track mortgage products have proven a popular choice for people who think we’re nearing the peak with the Bank of England’s Base Rate. The two products are even more attractive, with no arrangement or valuation fees at all, plus the choice of free legal fees or £200 cashback. While many other lenders are now charging very high fees on these types of products, we’re confident that our new schemes offer customers fantastic value in terms of both great rates and low upfront fees.”
Stephen Brown, senior technical director at MoneyQuest, commented: “We have seen a growth in popularity for droplock products where you can move later. With the Base Rate set to rise to at least 6 per cent, but with most economist saying it will drop back in 2008, being able to move to a tracker would be a good option. However, if there is no arrangement fee then that is great as fees are running away at the moment, with the average now around £1,000.”
