Stroud and Swindon Building Society is launching two three- and five-year fixed rate mortgages.
Available from 24 January, the three-year product is fixed at 4.44% and the five-year at 4.74%. An early repayment charge is only made within the fixed rate period, and borrowers can repay up to 25% of the loan without charge at any time, subject to conditions.
The three-year fix has a discount of 0.5% for a further two years after the initial three-year fixed rate period. Both rates automatically qualify for the Stroud and Swindon loyalty discount after five years.
The mortgage is available for house purchase or remortgage, and has the added benefit of free valuation fees. Legal fees are paid for those wishing to switch lenders. The society will also pay the excess advance fee for loans up to 95% of the value of the property, making it an attractive option for borrowers who have a smaller deposit and first-time buyers in particular.
Ashley Shepherd, senior manager marketing services, says: “We expect these new products to appeal to a wide range of customers as they are simple to understand and offer a variety of benefits aside from the attractive rates.
“There are several mortgages on the market which boast low interest rates but borrowers are often put off by the extended redemption penalties hidden behind the headline rates together with additional costs in the form of valuation and high lending fees. These new mortgage products as well as offering very competitive fixed rates, also give borrowers an element of flexibility, allowing them to repay up to 25% during the first two years, and there are no valuation or high lending fees to pay.”
Both mortgages are available from Friday 24 January via Stroud and Swindon's branches, through SSBS Direct, its Direct arm, or via intermediaries.