New capped tracker mortgage from Charcol

17 November 2004
Charcol has released a new, market leading, capped rate tracker mortgage.

Following Bank of England base rate plus 0.64 per cent, the mortgage has an upper limit of 5.89 per cent for its first five years.

"This is one capped rate that really does offer borrowers wanting five years of interest rate protection the best of both worlds," said Charcol's Ray Boulger.

"The lowest five year fixed rates are currently priced just under five per cent and so it only needs two quarter point reductions in the Bank of England base rate from the current 4.75 per cent to take the pay rate on this mortgage below the lowest fixed rate for the same term.

"Conversely, should base rate rise during the next five years, the maximum increase borrowers will suffer is only 0.5 per cent.

"This mortgage offers the full downside benefit if base rate falls from the current level, with little upside risk if it rises."

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