Fixed plus enables borrowers to have the payment security and budgeting of a three-year fixed rate, while receiving the benefits normally associated with tracker products if interest rates fall.The initial rate is fixed at the maximum borrowers pay for three years, but if market rates fall, the mortgage rate drops too. The product also comes with free valuation and up to 400 cashback. Rates start from 5.55%. Alison Hutchinson, managing director of Kensington Mortgages, says: “Some analysts are predicting reductions while others are suggesting increases. If your client is looking for a competitive rate, security over the long term and the ability to benefit from interest rate falls, then the three-year fixed plus adds up to a great deal.”
Kensington Mortgages has launched a fixed plus payment option on all its standard products, which combines the benefits of fixed and tracker features.