Cheshire’s flexible 25 year fixed rate mortgage

Following Chancellor Alistair Darling’s call to action for a longer-term approach to mortgage lending in today’s Budget announcement, Cheshire Building Society highlights the flexibility of its 25 year deal.

It has penalty-free windows starting as early as 2012 that offer opportunities to withdraw from the mortgage without an early repayment charge (ERC).

Cheshire Building Society’s long-term fixed rate mortgage offers borrowers the security of fixing their monthly payments with the flexibility to exit the deal as early as 2012 without an early repayment charge (terms and conditions apply). It offers a rate of 6.14% and the overall cost for comparison is 6.5% APR.

Anne Somers, Marketing Director for Cheshire Building Society said: “Traditionally, many borrowers have been put off long-term products as they are concerned that their situation will change or that rates will be lowered once they are locked into a deal. However, the current economic uncertainty now sees these products in demand but not hugely available within the market.

“Many borrowers look at this current product as a four year fixed rate mortgage with an option to continue at the same rate if they wish until the end of the long-term fixed rate period or repay it without incurring any early repayment charge.”

The Cheshire’s current 25 year fixed rate mortgage, allows borrowers to benefit from this rate until 2012 and then offers opportunities to withdraw from the mortgage without an early repayment charge in 2014, 2016, 2018, 2020, 2022, 2024 and 2026. If a borrower would like to exit the mortgage outside the penalty-free windows, the Society offers a sliding scale of ERCs which reduce the longer the mortgage is held. A borrower would be charged 5% of the original loan amount to exit in years 1-4, 4% of the original loan amount to exit in years 5-8, 3% of the original loan amount to exit in years 9-12, 2% of the original loan amount to exit in years 13-16 and 1% of the original loan amount to exit in years 17-20. After year 20 of the loan, borrowers can repay or switch the loan at any time without any early repayment charge.

The mortgage also offers flexible options including the ability to transfer the loan to another property and payment holidays up to the value of any over payments made.