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Britannia&#39s flexible loan offers loyalty incentive

Britannia Building Society is offering a flexible mortgage which rewards the loyalty of its borrowers as competition in the market intensifies.

Borrowers receive a 0.15 per cent discount on the interest rate if they keep their mortgage with the building society for five years. After 10 years, the discount increases by a further 0.15 per cent.

Existing members taking out a flexible mortgage with the society will also receive 12 months&#39 free unemployment cover and £250 cashback.

The interest rate on Britannia&#39s Cat-standard flexible mortgage is 5.95 per cent.

There is an initial six-month discount of 0.9 per cent and the rate is capped to prevent it exceeding the Bank of England&#39s base rate by more than 0.85 per cent.

Interest is calculated on a daily basis and there is an overpayment and underpayment facility available. Payment holidays are also included.

Head of marketing Alan Long says: “Clearly, the mortgage market is exception-ally competitive and will continue to be so for some time yet. You will start to see even greater flexibility within flexible mortgages.

“There will undoubtedly be more innovation in the marketplace than we have seen for many years but the flexible mortgage will never take over from the standard products. You have to be quite finan-cially astute.”

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