High Street Home Loans has brought in the 5.49 per cent fixed-rate mortgage.
Aimed at both first time buyers and remortgage borrowers, the mortgage has a fixed rate of 5.49 per cent for loan to valuation (LTV) up to 75 per cent or 5.69 per cent for LTVs of up to 95 per cent for two years.
There are no compulsory insurances and interest is calculated daily. The product also comes with free accident sickness and unemployment insurance for three months. High Street Home Loans promises a fast-track application process of just seven days, provided that the borrower supplies salary details.
Over a two-year period the rate of 5.69 per cent for loans up to 95 per cent LTV is quite competitive. However according to Moneyfacts the cheapest fixed-rate two-year mortgage on October 25, 2000, is provided by the West Bromwich Building Society, which offers the 5.35 per cent fixed rate, which has the same terms as the High Street Home Loans product.