N&P launches discounted mortgage at 2.95%

Norwich & Peterborough Building Society is launching a range of three-year discounted mortgages, including a rate at 2.95%.

The 2.95% deal represents a 2.40% from the mutuals SVR, and is available up to a maximum LTV of 75% and comes with a £695 reservation.

The product also has a floor of 2.75%

The range also includes a 3.15% discounted rate, up to 75% LTV and with a £795 fee.

The product offers a free valuation, and free legal fees or £200 cashback for remortgage customers.

Both products carry a 3% early repayment charge of 3% in the first three years, and allows 10% penalty-free capital repayment per annum up to £10,000.

N&P has also launched two offset products discounted for three years at 3.30% and 3.45%.

Richard Barker, product manager at N&P, says:  “N&P is carefully gearing up for an expected gradual increased demand as the housing market recovers in 2010. 

“We’re not predicting a boom by any means, rather we expect to see a slow and steady pick up in the numbers of borrowers looking to buy or re-mortgage. 

“Recovery from the recession is still fragile.”