The product offers a rate of 4.99 per cent and gives borrowers the opportunity to redeem penalty-free every five years within a one-month window. If a borrower needs to redeem in the first five years, the penalty reduces every year from 5 per cent in year one to 1 per cent in year five.
The arrangement fee of £999 is added to the loan and maximum loan to value is 75 per cent. There is a limited tranche available only through Mortgage Intelligence.
Brokers get their full procuration fee every five years, provided that they revisit the product to assess that it still constitutes the best deal for their customer.
Mortgage Intelligence managing director Sally Laker says: “This is a modern-day product which offers longer-term security against rate increases, flexibility for changing lifestyles but also ensuring that the broker gets paid for regularly checking that their client’s needs still match the original product.”
Burwood Financial Consultants managing director Peter Suttill says that it is a great product and it is a shame that not all brokers will have access to it.
Suttill says: “I hope that other lenders will launch flexible products like this or that In The Loop will start offering it to a wider selection of advisers.”