Scottish Widows Bank launches 10 year fixed rate

Scottish Widows Bank has started off the New Year with the launch of a new 10 year fixed rate mortgage product, starting at a competitive rate of 5.59% for loans under 75% loan to value.

The new rate comes with a low product fee of £499 which can be added to the loan, and the facility to repay up to 10% of the loan balance per year without early repayment charge.

Richard Clark, head of product development and marketing at Scottish Widows Bank comments: “Many people are coming to the end of cheaper short-term fixed rate deals, and affordability can become an issue when looking for a new deal. Although interest rates are expected to stabilise this year, demand for fixed rate deals is likely to remain strong as borrowers look to protect themselves against any future rate increases.”

“This new rate will help homeowners who want to lock in long-term value and avoid payment shock by having the security of knowing that their monthly payments are going to stay the same for a defined period.”