Mansfield Building Society has relaunched residential mortgage products linked to a Lifetime Discount follow-on rate that comes into play after the initial product term ends.
The new follow-on rate, 1.74% below the Society’s Standard Variable Rate, means that after the initial product term ends, borrowers would currently pay 7.15% variable for the remainder of the mortgage.
The new Lifetime Discount has been applied to its range of prime residential deals, including its Family Assist, Shared Ownership, Retirement Interest Only and Versatility products.
The follow-on rate has no Early Repayment Charges (ERCs), meaning borrowers will still be able to remortgage to another lender or select one of the Society’s loyalty deals at the end of the initial product term.
Richard Crisp, the Mansfield’s commercial development executive, said that the Society was responding to help borrowers by reducing the cost of borrowing over the long-term.
He added: “As cost inflation and interest rate rises have continued to stretch household budgets, we wanted to find a way to make home ownership more affordable over the long-term, not just during the initial product term.
“The introduction of our new Lifetime Discount means that borrowers can continue to enjoy access to our range discounted or fixed rate deals in the knowledge that they will continue to receive a generous discount for the residual term of their mortgage.
“As a result of this initiative, the Society has been able to flex its affordability stress test safe in the knowledge that borrowers with products linked to our Lifetime Discount will continue to pay a rate well below our SVR for the duration of their mortgage.
“We pride ourselves on the flexible solutions we offer to support borrowers and the introduction of our new residential Lifetime Discount rate will ensure that access to our extensive criteria remains an affordable reality for more borrowers.”