Egg launches leading 3 year fixed-rate mortgage

Egg, the online bank and award winning mortgage lender, has launched one of the best rates on the market today, a new three year fixed rate mortgage product with an interest rate of 5.39%.

At the end of the fixed term, borrowers will switch to Egg’s standard variable rate, currently 6.79%, for the remainder of the mortgage. The overall cost for comparison is 6.7% APR. Customers can also choose to offset their savings against this new mortgage product.

The mortgage also comes with a free standard valuation and Egg has arranged a free legal package for re-mortgage customers with the aim of making switching to this product both convenient and low cost.

Egg’s new fixed rate mortgage is available from 1 February 2008. The mortgage has an arrangement fee of only £499 and is available for loans up to a maximum of 90% of the property value. There are no early repayment charges after the fixed rate period has ended.

Stephen Bright, Head of Lending and Insurance at Egg, said: “This mortgage is aimed at customers who want the security of knowing exactly how much their monthly payment will be, and get it fixed at a great rate. In today’s climate with increasing energy prices and economic uncertainty, people want to manage their finances more effectively and budget for the longer term.”

The main features of the three year fixed rate mortgage include:

Rate of 5.39% fixed for three years thereafter changing to Egg’s standard variable rate, currently 6.79%, for the remaining term of the mortgage
The overall cost for comparison is 6.7% APR
Early repayment charges -
3% of the amount repaid during the first 12 months following completion.
2% of the amount repaid during the second 12 months following completion.
1% of the amount repaid during the third 12 months following completion.

Overpayments of up to 10% of the mortgage balance are allowed without an early repayment charge being due during the fixed rate period (payment of the arrangement fee upon completion is not included in this limit)

All loans redeeming will incur an administration charge of £70

Arrangement fee of £499 which will be added to the mortgage, and can be paid immediately after completion.

For further information on Egg’s range of mortgages, visit egg.com/mortgages.