Scarborough launches new flexible two-year fixed rate mortgage

Just days after the Bank of England’s latest interest rate rise, Scarborough is offering borrowers the peace of mind of a low rate fixed mortgage.

Launching this Friday, 25 May, the Society’s new limited edition Flexible 2 Year Fix will charge more than half a per cent less than the new Base Rate of 5.50%.

The two-year deal is fixed until 30 July, 2009, and is available for both purchase and re-mortgage, the latter benefiting from the Society’s free legal package.

Tony Burdin, Head of Group Marketing, said: ‘Although we believe the prospects for the UK housing market remain very positive, there is no doubt that borrowers will be starting to feel the pinch of four successive interest rate rises over the past 12 months – with the possibility that they could reach 6% by the end of this year.

‘At the same time, it is getting harder for lenders to offer cheaper fixed rate deals, due to the simultaneously rising cost of funds.

‘As a mutual building society, we believe we have a responsibility to respond by offering an alternative such as this which combines the benefits of one of the best rates on the market, with the peace of mind of guaranteed payments for a two-year period, after which time we hope and expect that rates will have started to stabilise again.’

He added: ‘This is the second time this year we have offered borrowers relief from their concerns about rising rates. Our last two-year fix, in March, sold out in days, proving that there is an overwhelming demand for packages of this nature in today’s climate.’