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Freestyle flexible mortgages and remortgages can save you thousands of pounds in
interest payments, during the life of your mortgage. With the facility
to overpay, link current accounts to "offset" interest, take
payment breaks and borrow amounts based on abilty to pay, not on
income multiples - it's no wonder they are fast becoming so popular. Your home may be repossessed if you do not keep up repayments on your mortgage |
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E-mail: Mortgage Arrangers |
Standard Life launches reducing rate mortgage
Standard Life Bank is set to launch the first mortgage in the UK with an
interest rate that decreases four times over the first five years. The Rate
Reducer feature of the Freestyle Flexible Mortgage is expected to save
borrowers £1000 a year on average for the first 10 years and more than
£35,000 over the life of a typical 25-year mortgage.
This £35,000 saving is made in comparison with an average two-year
discounted variable mortgage of £130,000 taken over 25 years with an initial
rate of 4.83% and revert to standard variable rate of 6.71% including an
average product application fee of £463.
Alan Dring, Standard Life Bank's head of intermediary development, said
industry research showed that the average length of time people aged between
35 and 44 stayed with a lender before switching was 5.4 years. "We have
launched a unique product which, in addition to potentially saving borrowers
up to £30,000, allows advisers the opportunity to offer their clients for
the first time a true financial planning tool.
"There are two products in our new Freestyle Flexible range with varying
flexible features. With our Freestyle Flexible 180 Mortgage, customers will
save £2,003 and with Freestyle Flexible 360 they will save £1,742 in the
first five years against the average two year discounted variable mortgage.
"At 10 years, the savings are even greater- £10,518 with Freestyle Flexible
180 and £10,257 with Freestyle Flexible 360."
Source:
BestAdvice.net