The Mansfield Building Society has launched a mortgage that has no early repayment charge.
The two-year discounted mortgage, available to customers
in England and Wales, will be one of the few available on the market that does not incur an early repayment if the customer wishes to repay the mortgage in full or part during the first two years of borrowing.
The benefit of no early repayment charge can lead to substantial savings for the customer.
On a 150,000 mortgage, the absence of an early repayment
charge – usually 3% of the agreed advance – would equate to a saving of 4500 if the mortgage is repaid in full before the end of the discounted period.
This combined with the simplicity of the mortgage makes it an attractive proposition for mortgage borrowers.
The new mortgage offers users a 2% discount for 2 years which means that the initial variable rate payable is 4.49%.
A variable rate of 6.49% is payable for the rest of the mortgage.
The overall cost for comparison is 6.4% APR and the product is available for house purchase or remortgage up to 75% of the property value.
Peter Doherty, product manager at The Mansfield Building Society, says: “We are able to offer a product that distinctly compliments and strengthens our product portfolio. I believe its benefits will attract borrowers who are currently with rival organisations as well as customers who are looking for a new mortgage when moving house.”
The Mansfield Building Society is a mutual organisation owned by its members and run for their benefit. It is not a plc and consequently, no dividends are paid to third party shareholders.