Savills Private Finance will launch a discounted mortgage on September 2 2002.
The three-year discount will be offered at an initial pay rate of 3.89%, a discount of 1.2% on the lender's standard variable rate (SVR), which is currently at a low level of 5.09%.
Flexible features include the option to make overpayments of up to 10% of the balance each year without any penalties and the ability to switch into any fixed rates available from the lender at any time, subject to the payment of the usual arrangement fees.
The deal offers a low redemption penalty of only 1% during the three-year discounted period and legal fees on remortgages are free, as are and valuation fees (up to 75% of property value).
The minimum loan amount is £25,001 and the maximum amount of £1m is available, with interest on the loan calculated on a daily basis. A £395 arrangement fee is payable.Mark Harris, director of Savills Private Finance, says: “The discounted rate of 3.89% offers one of the lowest rates of its kind on the market and the 1% redemption fee is particularly low for this type of product.”