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Cambridge increases choice for bigger loans

The Cambridge Building Society has introduced a five-year fixed-rate mortgage especially for bigger loans between £500,000 and £2m.

The large loan five-year fixed-rate mortgage is available up to a maximum of 75 per cent of valuation and comes with a 0.2 per cent arrangement fee subject to a £2,000 minimum. An additional £99 administration fee applies for remortgages, which benefit from free legal fees as well as the free basic valuation that is offered to purchases and remortgages.

Capital repayments of up to 10 per cent a year allowed without penalty in the fixed-rate period. Repayments above this amount in the first five years will incur an early redemption charge of 5 per cent of the mortgage balance.

Cambridge Building Society says many new mortgage products have been aimed at first time buyers, people looking for higher LTV mortgages and those wanting a long-term fixed rate. It has launched this deal to cater for wealthier homeowners looking for bigger loans, as new launches for this area of the market have been thin on the ground.

Defaqto insight analyst for banking David Black says: “For a five-year fixed rate at 75 per cent LTV that will accommodate a £2m mortgage, the Cambridge is offering a very competitive rate. For mortgages available through intermediaries, it is bettered only by Nationwide Building Society’s 4.14 per cent, which only has a £99 booking fee. For remortgages, the Nationwide offers a free standard valuation and standard legal fees.”

Black adds that for direct applications, NatWest is offering a five-year fixed rate at 4.09 per cent with a £999 fee.

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