Scarborough’s New 4.98% Two-Year Fix Offers Borrowers A Tonic For Rate Rise Headache

Press release published on 23 May 2007 by Scarborough Building Society

Just days after the Bank of England’s latest interest rate rise, Scarborough is offering borrowers the peace of mind of a low rate fixed mortgage.

Launching this Friday, 25 May, the Society’s new limited edition Flexible 2 Year Fix will charge more than half a per cent less than the new Base Rate of 5.50%.

The two-year deal is fixed until 30 July, 2009, and is available for both purchase and re-mortgage, the latter benefiting from the Society’s free legal package.

Tony Burdin, Head of Group Marketing, said: ‘Although we believe the prospects for the UK housing market remain very positive, there is no doubt that borrowers will be starting to feel the pinch of four successive interest rate rises over the past 12 months – with the possibility that they could reach 6% by the end of this year.

‘At the same time, it is getting harder for lenders to offer cheaper fixed rate deals, due to the simultaneously rising cost of funds.

‘As a mutual building society, we believe we have a responsibility to respond by offering an alternative such as this which combines the benefits of one of the best rates on the market, with the peace of mind of guaranteed payments for a two-year period, after which time we hope and expect that rates will have started to stabilise again.’

He added: ‘This is the second time this year we have offered borrowers relief from their concerns about rising rates. Our last two-year fix, in March, sold out in days, proving that there is an overwhelming demand for packages of this nature in today’s climate.’

The Flexible Two Year Fix is available through the Society’s network of nine branches or by calling Scarborough Direct on 0845 130 7374. Details can also be obtained by visiting www.scarboroughbs.co.uk.

Product Details

• The interest rate for this product is fixed at 4.98% until 30/7/09, after which it reverts to BBR + 1.49% for the remainder of the term, currently 6.99%.
• The arrangement fee payable for this product is £1,495, 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 4% of the sum repaid up to 30 July, 2008 and 3% of the sum repaid until 30 July, 2009.
• The Society’s free legal service is also available on re-mortgages.

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