Countrywide has signed an agreement with the insurer MarketGuard to distribute its rate capping insurance product, RateGuard.
Under the terms of the new agreement, RateGuard will be recommended to clients who are unable to remortgage but want to protect themselves against the effects of future interest rate rises.
Grenville Turner, chief executive of Countrywide, says: “RateGuard presents a huge opportunity for Countrywide to help the thousands of customers ‘trapped’on SVRs who are unable to remortgage.
“For years, SVR customers have felt that they only have two options; either remortgage or stay as they are and chance huge repayment increases if the Bank of England increase interest rates, but RateGuard presents a genuine alternative for those without the equity in their home to remortgage at an attractive rate.
Chris Taylor, CEO of MarketGuard, says: “The FSA estimates that changed lending conditions have already left in excess of two million people unable to remortgage. If interest rates start to move upwards in response to inflationary pressure this number will increase dramatically. RateGuard allows Countrywide’s consultants to protect their clients from the effects of interest rate rises by paying a monthly insurance premium, typically as little as £30 per month for 24 months’cover based on a repayment mortgage of £100,000 and an excess of 1%.”