Drop-lock deal from Savills

Savills Private Finance is offering an exclusive drop-lock mortgage deal which allows borrowers to track base rates now, but drop into a fixed or capped rate product from the same lender at any time.

The mortgage tracks the Bank of England base rate at 0.5% above for five years, giving a current pay rate of 4.5%. After that the margin rises to 0.75% above base rate.

Borrowers also have the ability to switch into any fixed or capped rates available from the lender at any time, subject to the payment of the usual arrangement fees. Currently there is a market-leading 4.99% fix for five years, for example. There are no penalties at any time and a £300 arrangement fee is payable.

Mark Harris, director at SPF, says: “This is a fantastic wait-and-see product which is available to both potential buyers or those looking to remortgage their existing property. With the general consensus that interest rates will remain flat for a while at least, a tracker product is a good idea for many people looking for a mortgage now.

“But if interest rates start to rise borrowers still have the flexibility to move to a fixed or capped rate to be sure of their monthly outgoings in the future.”