This is the lowest fixed rate the society has ever offered. On a £50,000 mortgage being repaid on an interest only basis, the monthly repayments for the first two years will be just £73.
The new mortgages all have rates fixed for two years. At the end of the two years, borrowers will be transferred automatically to the society’s standard variable rate and, a few years later, to the society’s Loyalty Scheme that gives them a special discount currently worth £200 per annum for someone with a typical £50,000 mortgage.
The new mortgages have arrangement fees that range from £295 to £395 but these can be added to the mortgage. Subject to status, applicants for any of these mortgages also get the first six months of their mortgage payment protection cover paid for without charge.
With the lowest rate, customers will incur a charge if they take their mortgage away from the society in the first six years. For customers who are not able to make this commitment, the Staffordshire is offering a two year fixed rate of just 3.85% with no ties whatsoever.