Savills Private Finance is offering borrowers the option of splitting their mortgage in any proportion between a two-year 3.85% fixed-rate loan and a two-year tracker at 0.15% below the base rate (current pay rate 3.85%).
Minutes from the Monetary Policy Committee meeting last week, published yesterday, show that while seven members voted that the base rate should remain at 4%, two voted to cut it by 25 basis points.
Mark Harris, director at SPF, says: “If the MPC members can't decide whether to cut interest rates or keep them at the current level how are potential borrowers meant to decide whether to fix their mortgage now or take a gamble that rates will fall further with a discounted or tracker mortgage. Our new deal gives them the chance to hedge their bets with a split between a tracker mortgage to benefit from any future falls and a market leading fixed rate if base rates start to rise.”
“We are delighted to offer this unique and highly competitive deal to clients to take advantage of this uncertainty. The fact that both payable rates are currently identical is an added bonus as the initial monthly payments, regardless of what split is taken, will be identical.”
The products are available for both new purchases and remortgages. There is an arrangement fee of £399 and with no redemption fees at the end of the two-year term.