Suffolk Building Society has launched a new standard residential mortgage product with no early repayment charge (ERC), for a limited time.
The mutual says its new product might appeal to borrowers who are reluctant to be tied into a mortgage deal at present because they anticipate a reduction in the Bank of England Base Rate and therefore expect better mortgage options to be available later in the year, or those looking to move in the near future and are looking to avoid paying an ERC to exit their product early.
The new ERC-free capital and interest repayment residential mortgage is available for purchase and remortgage on a two-year discount deal at 5.69% (SVR minus 3.00%), with a maximum LTV of 80%, a minimum loan size of £75k, maximum loan size of £1m, an application fee of £199, and a completion fee of £999. After 24 months, the product has a revert-to rate of the Society’s SVR minus 1.74% (with a 3% floor) for 36 months.
Andrew Sadler, key account manager at Suffolk Building Society, said: “Many homeowners will be taking stock of the UK’s housing market at present – trying to determine what might happen to both house prices and interest rates. We’re pleased to be offering this new product which allows borrowers additional flexibility.
“Although interest rates have come down from their peak, we appreciate that it is still an uncertain time for brokers and their clients. We hope our new residential mortgage with no ERC will be welcomed by those who, understandably, are not ready to lock into a fixed rate right now.”
The Society is also cutting its two-year and five-year fixed rate holiday let mortgage deals by 20bps to 6.09% and 5.79% respectively.