Charcol launches “simple to switch” tracker

Charcol.co.uk has launched a market leading “simple-to-switch” tracker for borrowers who don’t want to pay remortgage fees every few years. It has no arrangement fee, no exit fee, free valuation and legals for remortgages, no Early Repayment Charges (ERCs) and no Higher Lending Charge (HLC).

Katie Tucker, product specialist for Charcol.co.uk, comments: “This product is ideal for borrowers who want to remortgage now without the fuss or the fees, and for those who never want to pay a fee again, it tracks the Bank rate at a competitive level for the whole term of the mortgage, there is no Early Repayment Charge at any time and there isn’t even an exit fee.

“For borrowing up to 95% the 0.28 over base tracker is exceptional value as the Higher Lending Charge, is totally waived. Those lenders who charge HLC the equivalent of around 1.6% of the loan for 95% loans, so this product saves a borrower with £150,000 loan a fee in the region of £2,500. This is a great product for borrowers who are thinking of capital raising equity out of their property, or equally as good for first time buyers wanting a 95% loan and a tracker they are not tied in to.”

Key features

Up to 80% LTV: Bank Rate +0.17 for the term so pay rate currently 5.92% (overall cost for comparison is 6.0% APR)
Up to 95% LTV: Bank rate +0.28 for the term so pay rate currently 6.03%
(overall cost for comparison is 6.1% APR)
Flexibility: allowing overpayments, underpayments, and payment holidays.
No Arrangement fee
No Higher Lending Charge
Available to First Time Buyers
Available for purchase and remortgage
For remortgages free valuation and free legals

Tucker continues, “Tracker rates are the hot favourite now the market looks as though Bank rate is near its peak, and this is the market leading whole-term tracker. Fixed rates have yet to reduce to levels that offer a competitive alternative for the mid-risk borrower, so a product such as this tracker with no ERCs is ideal: borrowers can take advantage of any potential rate drops in the next year, whilst always being free to exit should they wish to.”

“The product is available to purchasers with no Arrangement fee, no HLC, no exit fee and no ERC, but it is on remortgages that these two mortgages really represent excellent value for money because of the free legals and refund on valuation.”