Ten-year fix at 4.99%

The product is fixed at 4.99% until 01/01/13 and has flexible features, including overpayments and payment holidays. The maximum loan-to-value is 95%; the arrangement fee can be added to loan and there are no extended tie-ins beyond fixed period.

David Bitner, mortgage technical manager for the MarketPlace, commented: “This is a fantastic deal offering a sub 5% rate for ten years. Although there is a 10-year fixed rate deal on the market at 4.95%, it is an annual interest product and does not allow payment holidays unlike our new exclusive from Leeds and Holbeck which is on daily interest. On a 25-year repayment mortgage, having interest calculated daily is equivalent to a reduction of 0.12% in the rate. Furthermore, the shorter the term of the mortgage, the greater the benefit of daily interest.”