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Borrowers can fix rate at any time in Charcol tracker deal

John Charcol has introduced a three-year tracker mortgage which features a drop-lock option allowing clients to move to a fixed rate almost instantaneously.

The exclusive product is funded by Scarborough Building Society and the initial borrowing rate starts at 4.69 per cent.

Borrowers can move to any of Scarborough’s fixed-rate deals at any time without additional cost. The society currently has a three-year fixed-rate deal at 4.49 per cent.

There are no early repayment charges on the tracker product. and borrowers can make overpayments, underpayments or take a payment holiday.

Remortgagers are offered a refunded valuation fee of up to 405 and free legals or cashback of 325.

The maximum loan to value is 90 per cent.

Senior technical manager Ray Boulger says: “This will particularly suit borrowers who need a new mortgage now and who like the idea of having a fixed rate but would prefer to take one when they consider the time is right, rather than when they happen to need a new mortgage.”

London & Country head of communications David Hollingworth says: “Charcol is keen on drop-locks. There have been various forms of these deals in the past. What the customer has to be aware of is that you would choose from a range of Scarborough’s fixed rates and you would have to make sure that these are competitive.”

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