L&C launches long-term fixed rate mortgage with no ERCs

L&C, the no-fee mortgage broker, has launched a long-term fixed rate deal with no Early Repayment Charges (ERCs) at any time.

The rate is fixed at 5.99% for any term up to a maximum of 30 years and will provide borrowers with a unique combination of long-term security and flexibility.

The deal is available for both purchases and remortgages and carries an arrangement fee of 2%. Borrowers will then receive a 2% loyalty bonus in year 10 and again in year 20.

The Government recently announced its intention to try and boost the supply of longer-term fixed rate mortgages. However, demand is low in the current market mainly because borrowers simply don’t like to be tied in to a mortgage for the long-term.

Last month, L&C surveyed 1,200 of its customers to find out their views on long-term fixed rates. When asked if they would consider a 25-year fixed rate, 48% of them said they would, however 68% of those said they would be able to stomach ERCs for no more than five years.

Commenting on the deal, James Cotton, Mortgage Specialist at L& C said, “Our recent survey shows that whilst borrowers are attracted by the security that long-term fixed rates can offer, the ERCs that go with them are the biggest turn off. This new deal solves that problem by offering both long-term security and the flexibility that comes with having no ERCs."