Scarborough fixed-rate mortgage provides 'certainty'

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Scarborough fixed-rate mortgage provides 'certainty'

Tue 27th Mar 2007

Scarborough Building Society has launched a new two-year fixed-rate mortgage with a competitive interest rate of 4.94 per cent.

Following the end of the fixed term the package will revert to the base rate plus 1.49 per cent, which is currently 6.74 per cent.

Possessing a maximum loan-to-value of 95 per cent, there is a £995 arrangement fee for the Scarborough fixed-rate mortgage, which can be added to the loan on completion.

The package also offers a great deal of flexibility, with capital repayments of up to 20 per cent being permitted, with underpayments and payment holidays also allowed.

Early repayment charges comprise three per cent of the sum repaid up to May 2008 and two per cent thereafter to May 2009.

Tony Burdin, head of group marketing at Scarborough, said that the prospect of further interest rate rises in the near future would continue to create "uncertainty".

He added: "This is why we decided it was important to offer an alternative which would give homebuyers the added peace of mind of affordable, guaranteed monthly payments for two years, after which there is every chance that the interest rate tide will have started to turn again."

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