New 10 Year Fix At 5.49% Provides A Shelter From Future Rate Rises

Press release published on 28 March 2007 by Scarborough Building Society

Scarborough Building Society has this week launched a highly competitive range of 10-year fixed rate mortgages, giving borrowers the peace of mind of controlled mortgage payments over the longer term.

The Society’s Flexible 10 Year Fix will charge 5.49% until 30 May, 2017 and is available for purchase and re-mortgage – the latter having the benefit of the Society’s free legal package.

Tony Burdin, Scarborough’s Head of Group Marketing, said: ‘With continued uncertainty over interest rates – and the prospect of a further increase in the Bank of England Base Rate on the horizon within the next couple of months - many people are looking for mortgage products offering longer term certainty.

‘As a mutual building society, we believe we have a responsibility to cater for this need by offering this product which offers an attractive blend of longer term peace of mind and a competitive interest rate, which is among the best available. We are also quite unusual in offering this type of product to people with previous credit problems and those needing to self certify their income.’

The product offers the Society’s normal flexible terms, including the facility to make capital repayments of 10% per annum without penalty. There is also a ‘fee assisted’ version of the product available at 5.69%, which has no arrangement fee and a £250 cash-back. For borrowers with special circumstances, the 10 year flexible fixed rate is available on a self certification of income basis from 5.74% and as a light adverse ‘credit repair’ option from 5.99%. Both also have ‘fee assisted’ options.

The products are 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 5.49% until 30 May, 2017, 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 £695, which can be added to the loan
• A fee assisted option is available at 5.69%, with no arrangement fee and £250 cash-back
• The maximum loan-to-value available is 95%
• Also available as a ‘credit repair’ option from 5.99% and self-certification from 5.74% - both up to 80%
• Capital repayments of up to 10% are permitted without penalty, and underpayments and payment holidays are also allowed
• Early repayment charges are 5% of the sum repaid up to 30 May, 2013; 4% up to 30 May, 2014; 3% to 30 May, 2015; 2% to 30 May, 2016 and 1% to 30 May, 2017
• Fee-free legals are also available on re-mortgages

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