Smile launches new tracker mortgage

Internet bank, smile, is launching a new tracker rate mortgage product.

Details of the new product are as follows:

2-year tracker product currently at 5.09% (Bank of England Base Rate – 0.16%)

Free legal and valuation fees for remortgages

The new mortgage product is provided by The Co-operative Bank and offers excellent overall value to all borrowers whether buying for the first time, moving home or simply remortgaging from another lender. Also, borrowers choosing to remortgage will benefit from free legal and valuation fees.

The new two-year tracker mortgage guarantees to track the Bank of England Base Rate, currently 5.25 per cent, minus 0.16 per cent for the duration of the loan.

John Barker, Head of Mortgages at Co-operative Financial Services, said: “This new product offer customers an excellent rate and peace of mind that their rate will remain under the Base Rate for the initial period of the loan”.

In addition to offering a comprehensive range of mortgage products, smile does not impose costly Higher Lending Charges (HLCs) on borrowers who wish to borrow more than 95 per cent of the value of the property. Such charges, which are imposed by other lenders, can potentially cost consumers up to an additional £2,000 when buying a home.

Customers can benefit from a number of positive environmental features including receiving a free home energy report with their property valuation, which assesses the energy efficiency of the property and identifies ways in which it can be improved.

In addition, for the duration of the mortgage, smile will make an annual donation to Climate Care to help tackle global warming. Houses are one of the largest sources of carbon dioxide emissions in the UK and, by using the Bank’s annual donation, Climate Care will be able to offset around one quarter of an average home’s carbon dioxide emissions each year for the lifetime of the mortgage.