Ultimate choice offers borrowers a chance of taking either a cashback of up to six per cent of the loan or a discount of up to 1.2 per cent on the mortgage base rate.
The mortgage is unusual in that it comes with free accident sickness and unemployment insurance for one year. It also has free worldwide family travel insurance in conjunction with its optional building and contents policy. The Furness joins the small number of lenders, including Market Harborough and Stroud & Swindon, that offer interest calculated monthly on mortgages that are not classed as flexible mortgages.
However, if the mortgage is redeemed in the first five years, then early redemption charges come into play. Either the amount of cashback must be repaid or the amount saved by having the discounted rate must be repaid, depending on which option was taken. However, the mortgage is fully portable so people staying with the Furness should not be put off from moving house in that time.
The Furness is able to offer a very competitive rate of 7.35 per cent, when compared to rival Northern Rock's cashback mortgage, which offers a rate of 7.79 per cent with redemption penalties that last for 6.5 years.
The only real drawback of ultimate choice is that it is only available to borrowers in England and Wales, not to those in Scotland and Northern Ireland.