Scarborough’s New 2-Year Fixed Rate Mortgage Tops The Tables At 4.94%

Press release published on 26 March 2007 by Scarborough Building Society

With another potential Bank of England Base Rate hike on the horizon, Scarborough is offering borrowers the opportunity to fix for peace of mind – with a market-leading rate to boot.

Launching on Friday, 23 March, the Society’s table-topping new limited issue Flexible 2 Year deal is fixed at 4.94% until 30 May, 2009. It is available for both purchase and re-mortgage, with the latter having the benefit of the Society’s free legal package.

Tony Burdin, Head of Group Marketing, said: ‘Although there is evidence that confidence is returning to the mortgage market as the traditional Spring house buying season approaches, the prospect of a further Bank of England Base Rate rise in the next couple of months continues to create an element of uncertainty.

‘The issue is compounded by the fact that cheaper fixed rate deals have become fewer and further between as many lenders have been forced to re-price their ranges due to the knock-on effect of the rising cost of funds.

‘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.’

The product is available through the Society’s network of nine branches, by calling Scarborough Direct on 0845 130 7374 or via a mortgage broker. Details can also be obtained by visiting www.scarboroughbs.co.uk.

Product Details

• The interest rate for this product is fixed at 4.94% until 30 May 2009, after which it reverts to BBR + 1.49% for the remainder of the term, currently 6.74%
• The arrangement fee payable for this product is £995, which can be added to the loan on completion
• The maximum loan-to-value available is 95%
• Capital repayments of up to 20% per annum are permitted without penalty, and underpayments and payment holidays are also allowed
• Early repayment charges are 3% of the sum repaid up to 30 May, 2008 and 2% of the sum repaid until 30 May, 2009
• The Society’s free re-mortgage legal service is also available on re-mortgages

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