The product will have an initial rate of 5.85 per cent and will only be available online. The arrangement fee will be £1,499 and can be added to the loan. There is a maximum loan-to-value of 95 per cent and overpayments of up to 10 per cent of the outstanding balance per annum are allowed during the initial deal period. A higher lending charge may apply, while early repayment charges are set at 2 per cent until 31 August 2008, followed by 1 per cent until 31 August 2009.
Chris Pearson, director of intermediary mortgages at Royal Bank of Scotland, said: “We are very keen to offer very competitively priced products to intermediaries and to make the most of the benefits that technology provides. With this product we have achieved both.”
