Legal & General's mortgage club is offering two market-leading exclusive loans for cash-conscious borrowers wanting either a discount or a fixed rate for their mortgage.
The discounted loan offers a reduction of 2.25% off the standard variable rate for two years, giving an initial pay rate of 3.70% (APR 5.7% variable). At the end of the discounted period the rate reverts to the lender's variable rate.
The second exclusive mortgage offers a fixed rate of 3.79% (APR 5.3%) until April 30 2004. At the end of the fixed rate period the interest rate tracks bank base rate in steps as follows:
0.01% below bank base rate until April 30 2005
0.20% above bank base rate until April 30 2006
Then 1.50% above bank base rate for the remaining term of the mortgage.
Both exclusive mortgages allow borrowers to repay up to 10% of the original loan each year without incurring a redemption charge and are available up to 95% LTV for purchase and 90% LTV for remortgages.
On the discounted loan redemption fees of six months interest at the standard variable rate will be payable for two years. On the fixed rate loan redemption fees of six months interest at the standard variable rate are payable until April 30 2006.