Charcol offers exclusive flexible discount tracker

Charcol is highlighting the appeal of tracker mortgages by offering borrowers an exclusive market-leading flexible tracker mortgage.

The rate is Bank Base Rate minus 0.8% until February 29, 2004, giving a current payrate of 3.20% (5.1% APR), followed by Bank Base Rate + 0.4% to February 28, 2006. The average rate over the period, assuming completion on March 1 2003, matches Bank Base Rate.

The deal, which is available to purchasers and remortgagers, has reducing redemption penalties to February 28, 2006, but penalty-free overpayments of up to 10% per annum are allowed. Payment holidays and underpayments are available up to the amount of overpayments made. In addition, a payment holiday is available for up to six months even if no overpayments have been made, subject to the total debt at the end of the payment break not exceeding 75% LTV. This can be taken all at once or a month at a time.

Ray Boulger, senior technical manager at Charcol, says: “With the potential for a Bank Base Rate reduction in the future, tracker loans have great appeal and this is the market-leading three-year tracker.”

This mortgage is available up to a maximum of 80% of property value and has a minimum loan size of £150,000. A similar alternative is available for borrowers requiring a smaller loan.