Money News
Egg, the online bank and mortgage lender, has launched new 2 and 3 year fixed-rate mortgages - both carrying a rate of 5.89%. At the end of the fixed term, borrowers will switch to the bank's standard variable rate, currently 6.94%, for the remainder of the term. Overall cost for comparison is 7.1% APR for the 2-year deal, 7.0% APR for the 3-year deal.
The loans, which are open to all new and existing customers, are available from September 24th and come with a free initial valuation. However, the 2-year loan also comes with an arrangement fee of £899, whilst the 3-year offer has a £749 fee.
Maximum LTV is 95%.
Early repayment charges meanwhile work out to 2% of the amount repaid in year 1, then 1%, for the 2-year deal; 3% of the amount repaid during in year 1, then 2%, then 1%, for the 3-year deal.
Borrowers can, however, overpay by up to 10% each year during the fixed rate period without charge. And they may take payment holidays.
21 September 2007 © Moneyextra.com
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