People who wish to borrow more than £500,000 to buy a house could benefit from a new tracker mortgage from the Woolwich.
The mortgage is designed to target bankers, entrepreneurs, brokers and consultants who are expecting a bonus in the new year but want to buy a property now.
“The key to the mortgage is that it offers full offset facilities,” said Andy Gray, head of mortgages for Woolwich.
Mr Gray added that because those expecting a bonus do not receive it until after Christmas, those intending to use it on property “might be restricted by what they can borrow and by the choice of mortgage type. If they wait for the bonus the property may have gone”.
With a fee of £1,499, the loan is fully flexible and those will have a 4.24 per cent interest rate until July 2007 when it will revert to 5.24 per cent – the Bank of England base rate plus 0.49 per cent.
The mortgage could prove useful for potential buyers in Kensington and Chelsea who earned 12 per cent of all bonuses over £30,000 last year, according to the Scotsman.
According to the Council of Mortgage Lenders, there are 11.6 million mortgages in the UK with loans totalling over £1 trillion.
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