New best-buy 3-year fix launched by N&P

Norwich and Peterborough N&P Building Society has introduced a new 'best buy' three-year mortgage product at 75 per cent loan-to-value LTV.

The lender is offering the product to customers with a rate of 3.64 per cent, aiming to attract those looking to purchase their own home or remortgage.

A £995 product fee is also applicable, while there is a penalty-free ten per cent per year capital repayment facility.

N&P has also taken the decision to reduce rates on its existing 85 per cent LTV three-year fixed rate deals to 3.94 per cent.

Richard Barker, product manager at the firm, said N&P had improved its mortgage range at the beginning of August, and was happy to be doing so again now.

Paula John, editor at Your Mortgage, warned homeowners this week that they should not get too used to interest rates being so low.

The Bank of England has frozen its base rate at 0.5 per cent since March 2009, helping to keep costs low for many mortgagees, but she claims it will rise significantly once the economic recovery is secured. 

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2010-08-26 10:04:10 © Moneyextra.com