Principality offers fixed option on tracker deal
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Principality Building Society is launching a three year tracker which can be switched to a fixed deal at any time in the future.
The tracker deal is currently available at 2.49% above base rate, which is now 2.99%, with a £999 product fee at 75% LTV.
The switch can be made without activating the early redemption charge of 3%.
If the borrower chooses not to switch, the three year tracker rate will change to the Society’s Standard Variable Rate, currently 4.99%, for the remainder of the mortgage.
Council of Mortgage Lender’s data shows 48% of borrowers took out a fixed-rate mortgage in June - the highest proportion this year.
And data released from John Charcol reveals that three quarters of borrowers opted for a variable rate mortgage in July.
James Wright, marketing director at Principality Building Society, says: “We recognise that the current climate coupled with conflicting economic forecasts, pose a confusing set of circumstances for borrowers. While the City predicts low interest rates for some time to come, chief economist of the Policy Exchange think tank, Andrew Lilico, recently forecasted that interest rates could reach 8% by 2012 - a move that would see mortgage repayments soar.”
Principlaity will pay legal and valuation costs for remortgages.
