Scarborough launches two-year fix

Scarborough has launched a two-year fixed rate mortgage with a rate of 4.94% until May 30 2009.

It is available for both purchase and remortgage, with the latter having the benefit of the societys free legal package.

Tony Burdin, head of group marketing at Scarborough, says: “Although there is evidence that confidence is returning to the mortgage market as the traditional Spring house buying season approaches, the prospect of a further Bank of England base rate rise in the next couple of months continues to create an element of uncertainty.

“The issue is compounded by the fact that cheaper fixed rate deals have become fewer and further between as many lenders have been forced to re-price their ranges due to the knock-on effect of the rising cost of funds.

“This is why we decided it was important to offer an alternative which would give homebuyers the added peace of mind of affordable, guaranteed monthly payments for two years, after which there is every chance that the interest rate tide will have started to turn again.”