Derbyshire offers five-year mortgage
30 April 2004
The Derbyshire has unveiled its new mortgage scheme - a five year capped rate plan.
The mortgage is currently set at 4.75 per cent until May 31st 2009, a rate that is just 0.75 per cent above the bank base rate. It is also guaranteed that borrowers will at no point have to pay over 5.89 per cent during this five-year period.
The building society is billing the mortgage as being more appealing due to recent interest rate rises.
It seems that borrowers on the whole have become more aware of the need for security when it comes to mortgage payments - and the capped rate assures them the maximum rate is set in stone for the period of repayment, while allowing them to benefit if interest rates go down.
The Derbyshire's new product is available up to 90 per cent of the property value. Additionally, homeowners can make ten per cent capital repayments should they choose to without early repayment charges.
On top of this, the building society draws attention to the lack of an application fee, free valuation, and free legal fees for re-mortgagers.