The two products, ‘Stepping up' and ‘Stepping Down', include annual steps to make them more suitable for borrowers with changing lives.
The first of the new products, Stepping Up, has a rate that starts low and, as the name suggests, steps up annually. The product is aimed at those borrowers who may find standard fixed rate products initially too expensive but know that their income is going to increase over the coming years, such as graduates; the low start gives them the opportunity to get on the housing ladder.
Product features
Stepped interest rate -
Year 1 - 5.39% fixed to 31 Oct 2009
Year 2 - 5.79% fixed to 31 Oct 2010
Year 3 - 6.19% fixed to 31 Oct 2011
Year 4 - 6.59% fixed to 31 Oct 2012
Year 5 - 6.99% fixed to 31 Oct 2013
APR 6.70%
The second product, Stepping Down, reverses the rate movement, with a higher initial rate and steps down annually. This will suit those customers who are currently financially well-placed but may be planning life changes that require lower outgoings, such as retirement.
Product features
Stepped interest rate -
Year 1 - 6.99% fixed to 31 Oct 2009
Year 2 - 6.59% fixed to 31 Oct 2010
Year 3 - 6.19% fixed to 31 Oct 2011
Year 4 - 5.79% fixed to 31 Oct 2012
Year 5 - 5.39% fixed to 31 Oct 2013
APR 6.70%
