Principality offers new mortgage rates

Principality, Wales' largest building society, has launched a new mortgage designed to support borrowers in the dilemma of choosing between a tracker or fixed-rate mortgage.

The company believes that the new three year tracker switch to fixed product for a maximum loan to value of 75 per cent will offer customers the best mortgage rates around for such a product.

Borrowers taking out the new product, which is available at a variable rate that tracks the Bank of England base rate plus 2.49 per cent, have the option to switch to a fixed-rate mortgage at any time without charge.

James Wright, marketing director at Principality Building Society, explained that the company recognised the current economic climate and differing economic forecasts pose a confusing set of circumstances for customer.

He added: "This new mortgage deal offers borrowers a competitive tracker mortgage, with the option to fix in and secure their mortgage repayments for a set term, should more evidence emerge to indicate an interest rise in the near future."

According to research carried out by Principality, among 600 people in Wales, around 35 per cent of borrowers said they were beginning to make plans to cope with their mortgage repayments if interest rates rise.
 

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2010-09-06 12:47:46 © Moneyextra.com