Legal & General is rolling out an exclusive discounted self-certification mortgage which tracks the Bank of England base rate for the life of the loan.
Borrowers have the option of two discount rates for the first two years of the mortgage, after which both revert to 1.98 per cent above the Bank of England's base rate, currently 5.75 per cent.
There is a 1.5 per cent discount giving an initial rate of 6.23 per cent for the first two years. Alternatively, borrowers can choose a two-year discount of 1.7 per cent which gives an initial rate of 6.03 per cent.
The loan is aimed at the self-employed. There is no minimum income stipulation and no proof of earnings is required.
The mortgage is available up to 85 per cent loan to value and can be used for house purchase and remortgaging. It also includes the option of using the loan to raise capital for business purposes.
PR manager (housing) Peter Timberlake says: “Typically, borrowers who choose one of these exclusive loans will be refinancing existing mortgages or unsecured or secured loans. They may also be making home improvements, matrimonial settlements or paying for school fees or a second home.”