One of the deals is fixed at 4.99 per cent until January 31, 2015 for loans up to 90 per cent of valuation to a maximum of £300,000. The other rates in this range are fixed at 3.29 per cent to a 75 per cent LTV, 3.59 per cent for loans up to 80 per cent LTV and 3.99 per cent for loans to 85 per cent LTV.
All rates in this range have a £999 application fee for new loans and additional borrowing of at least £50,000. This fee can be split between a non-refundable £299 payable on application and the remaining £700 can be added to the loan. A £249 application fee applies to additional borrowing under £50,000, which includes a non-refundable £99 upfront, while the remaining £150 can also be paid upfront or added to the loan.
Other incentives include free valuation for all applicants and free standard legal fees for remortgages. An extra £99 admin fee applies to remortgages .If borrowers switch to a different lender or makes a capital repayment above the 10 per cent a year allowance, a 4 per cent early redemption charge is payable.
Defaqto insight analyst for banking David Black says: “There are 111 three- year fixed rate mortgages that are available for those seeking 90 per cent LTV. The average rate charged is 5.71 per cent with a £647 arrangement fee. So, the Cambridge’s new 4.99 per cent fixed rate with a £999 fee has a competitive rate but it is some distance behind the pick of the bunch which is undoubtedly Leek United Building Society’s 3.99 per cent fixed with a £995 fee.
“Against this stiff competition, however, the new Cambridge offering does have the advantage of a free valuation and, for remortgages, free standard legal fees.”