The internet bank smile has launched a new mortgage that tracks the Bank of England (BoE) base rate for the entire duration of the loan.
The smile Lifetime Tracker Mortgage is provided by The Co-operative Bank and guarantees to track the BoE base rate of 4.5 per cent plus 0.45 per cent for the entirety of the loan’s lifetime.
It also offers a number of incentives, such as no early repayment charges, nor any higher lending charges, which some mortgage lenders continue to levy.
Sheila Macdonald, chief operating officer at The Co-operative Bank, said: “It has become common for some borrowers to switch their mortgage regularly in order to keep their rate competitive. We are so confident that our customers wonít need to switch to an alternative product, that this new product has no early repayment charges.
“It gives long-term peace of mind that their rate will remain close to base rate for the entire life of the mortgage.”
First time buyers will be able to pay an advance on their mortgage of up to 95 per cent of the house price, while those remortgaging to smile will get their legal and valuation fees completely free.
First time buyers will also receive an energy rating with their property valuation, estimating the energy efficiency of the property, and identifying ways in which it can be improved.
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