Legal & General's Mortgage Club is launching tow new exclusives - a two-year discount of 2.25% giving an initial pay rate of 3.7% and a two-year fixed rate of 3.79%.
At the end of the fixed rate deal the interest rate tracks bank base rate in steps. It is calculated at 0.01% below bank base rate until April 2005, then at 0.2% above base rate until April 2006, and then at 1.5% 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.
The mortgages are available up to 95% LTV for purchases and 90% 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 will be payable until April 2006.