The facility will be available on the Bank’s Professional and Flexible products, and will enable customers to offset against a fixed rate until 31 October 2008. Previously only customers on a variable, tracker or discounted product have been offered the option to offset.
The two-year fixed rate offset will be offered at the following rates:
Up to 95 per cent - 5.45%
Above 95 per cent - 5.99%
Murdo McHardy, head of product development and marketing at Scottish Widows Bank, said: "With base rate movements at the back of everyone’s minds, it is important for lenders to support their customers by offering more security in their products to those that want it. In the current climate, this product offering will not only provide a welcome safeguard of a fixed rate, but also the flexibility of an offset product that ensures your savings are consistently working to reduce your mortgage."
The Bank will be distributing an offset/overpayments calculator to its IFA database of 4,500 brokers. The software will enable IFAs to demonstrate the benefits of offset and flexible mortgages for a client’s individual situation, via graphic illustrations.
For applications submitted from 18 September to 31 October 2006, the Bank is also offering an increase in procuration fee of £50 per case.
McHardy commented: "The combination of the new fixed rate, offset/payment calculator and enhanced procuration fees makes the Scottish Widows Bank new fixed rate offset mortgage facility one of the most compelling deals on the market, equipping brokers with an attractive package when they come to advising their clients."
