Play the waiting game with John Charcol
18 July 2006
At a time when no-one is really sure which way interest rates are moving next, John Charcol, independent mortgage broker has launched an Early Repayment Charge free, five and a half year tracker with a rate of 4.49% (5.4% APR) with a drop-lock facility.
Borrowers who take advantage of the highly competitive tracker rate also have the right to switch to any fixed rate offered by the lender at any point without incurring an additional arrangement fee, which is unique.
The above rate is available for purchasers and remortgagers but an additional option for remortgagers is a tracker rate of 0.09% above base – 4.59% (5.4% APR) – with a reduced fee of £299 and free legal fees. The valuation fee on both products is a flat £200.
Ray Boulger, senior technical manager at John Charcol, comments: “In the current market there is considerable uncertainty as to where rates are headed over the next year, but current fixed rates are factoring in a half a per cent rise in Bank Base Rate which may well not happen. We have therefore specifically put together this mortgage as a superb solution for those who think fixed rates are expensive but like the idea of a fix when they feel the price is right. Put simply, it allows borrowers to take advantage of a low tracker rate whilst retaining the ability to move onto any fixed rate, until 31st January 2012, for any reason. A unique feature of this droplock option is that borrowers will not be charged a new arrangement fee if they exercise their right to switch.”
Boulger continues, “The message for borrowers is clear. If they need the security a fixed rate brings immediately then this is not the deal for them. However, with differing views on the future movement of Base Rate, those that can play a wait and see game should look at deals like this. “
