Royal Bank of Scotland's Irish subsidiary First Active is moving into the UK intermediary market with two mortgages.
It is offering a two-year discount and a five-year stepped loan. The discount features a rate of 4.04 per cent until 2006, reverting to Bank of England base rate plus 0.69 per cent.
The five-year stepped mortgage starts at 3.14 per cent for the first year, moving to 4.44 per cent in the second year, 5.24 per cent in the third, 5.74 per cent in the fourth and 6.14 per cent in the fifth. From the sixth year the rate is 0.69 per cent above bank base rate. Loans up to 100 per cent are available. There is an arrangement fee of £299 for purchase and £399 for remortgages. Income multiples are based on affordability.
First Active head Jayne-Anne Gadhia says: “Our first two products offer competitive initial and long-term rates backed by a quick and efficient service which will minimise paperwork for intermediaries.”