CHL Mortgages has launched a self-cert fixed rate product at 5.79% until March 2008.
It is available up to 90% LTV with no early repayment char-ges after the fixed period and no higher lending charges.
Its proc fee is 0.5% and the product is only available to the self-employed, with no requirement for proof of income or accountants’ questionnaires.
Trevor Child, head of sales and marketing at CHL, says: “This product all-ows borrowers to benefit from a good fixed rate until next March and then, if interest rates come down, they can move to a better deal.
“This could prove to be a better op-tion than getting locked into a long-term fix, given that interest rates are expected to fall from spring next year.”
Philip Stevenson, director of Ark Financial Planning, says: “The rate seems competitive, but when you consider that borrowers would have to pay all the costs associated with switching deals, such as brokers’ and legal fees, in less than a year’s time it doesn’t represent such good value.
“Even if fixed rates do come down at some point early next year, there’s still not enough of an incentive for people to go through the mortgage process all over again in such a short timeframe.”