The AA has officially launched into the mortgage market with a range of fixed-rate loans for its breakdown members.
The range includes two-, three-, four- and five-year loans. All are bundled with free home emergency and repair cover as well as central heating emergency and repair cover for 12 months.
Customers will also get a 15 per cent discount on AA home insurance.
Rates include a 2.08 per cent two-year fixed at 60 per cent LTV with no fees and free standard legal fees for remortgage customers.
The range also includes a 2.67 per cent five-year fixed at 60 per cent LTV, also with free standard legal fees for remortgagors.
Research from the AA found its average member had been on the same mortgage deal for more than five years, while more than a fifth have not reviewed their mortgage for more than ten years.
The AA financial services director Michael Johnson says: “We know lots of our members are currently sat on expensive mortgage deals spending far more than they need to, but a combination of high fees and a lack of information ar e stopping them from switching to a better deal.
“This mortgage range has been developed to respond to the needs of our members by removing hidden costs and providing simple, straightforward information, to reduce the hassle of re-mortgaging or buying a home.
“The AA is committed to being the pre-eminent membership organisation in the UK and a mortgage offer for members will help achieve that.”
In July Mortgage Strategy reported that the AA had registered the trademark ‘The AA Mortgages’ and was eyeing a Q3 launch.